Implementation of the project will occur within these regions:
Gießen Officially Classified as a "Region with a Tense Housing Market"
The city of Gießen is set to be officially classified as a region with a tense housing market this year, according to the Hessian state government. This classification, subject to two pending cabinet decisions, comes as a response to the increased rent burden on households and the high demand for housing due to the city's continued growth.
The basis for this re-evaluation is the current update of the Gutachten of the IWU Institute, which has not yet been published. The Hessian Ministry of Economics has already informed the city that Gießen meets the criteria for a tense housing market according to the new assessment.
Once the classification takes effect, the rent brake will apply in Gießen, limiting the increase of rent for newly rented apartments to 10% above local comparative rent. There will be exceptions for comprehensively modernized apartments. The Rent Cap will also apply for new rental agreements.
The classification of Gießen as a tense housing market allows for closer alignment of political will and legal possibilities to address housing issues. The city will have more opportunities to combat housing vacancy and simplify building law requirements to promote housing construction.
In addition, administrative measures can be taken to make idle housing space usable again in certain cases. The Vacancy Law of the State of Hesse will allow authorities to take action against long-vacant apartments in Gießen.
Moreover, conversions of rental apartments into owner-occupied apartments will become more difficult in Gießen. The Conversion Ban will make it necessary for landlords to obtain official approval before converting rental apartments into owner-occupied apartments.
The current tenant protection ordinance in Gießen, which expires on November 25, 2025, will be replaced by a new ordinance before this deadline. The decision is scheduled to be made by the Hesse state government in the fall.
The city can apply building law instruments to promote housing construction and create additional housing space, subject to certain conditions. This classification is expected to provide a significant boost in addressing the housing issues faced by the city of Gießen.
