Berlin’s Housing Crisis: KUMMUNI is Changing the Game

Berlin faces a housing crisis like never before hitting both longtime locals and new arrivals hard. Rent prices have shot up, homes are scarce, and people are fighting tooth and nail for a place to live. This mess has a big effect on how the city’s people get along and how well its economy runs. As a result, some clever folks are coming up with new ways to tackle the urgent need for homes that won’t break the bank.

In response to these issues, KUMMUNI, an award-winning proptech has become a real game-changer in Berlin’s property scene. The company has caused a revolution in the idea of coliving in Berlin offering a new take on city living that mixes affordability with experiences that build community. By rethinking furnished apartments and shared living areas, KUMMUNI is not tackling the current housing shortage but also creating a new lifestyle that clicks with modern city folks. Their breakthrough model is about to transform Berlin’s housing market and give much-needed help to those hit by the ongoing crisis.

Berlin’s housing market is in trouble, and this has a big impact on people living there. The city’s property scene has changed a lot creating a bunch of problems that affect different groups of people, especially the foreigners.

Berlin faces a big problem with not enough affordable housing in crowded areas. This hits people with low and middle incomes the hardest. Things have gotten so bad that even apartments far from the city center now cost more, which many can’t afford. The Eduard Pestel Institute for Systems Research says Germany needs over 700,000 more apartments, with a lot of these needed in the affordable range.

“Discrimination in the German’s housing market has become a major issue, yet many don’t even address it,” says Constanze Bungs the COO of KUMMUNI. The Federal Anti-Discrimination Agency conducted a study that showed about 15% of people who looked for an apartment in the last ten years faced discrimination because of their race, ethnicity, or origin. This issue is particularly pronounced for individuals with migrant backgrounds, with one in three reporting instances of racial discrimination during their housing search.

The problem of discrimination in the housing market is not limited to racial or ethnic factors. Religious discrimination also plays a role, with Jewish and Muslim individuals facing significantly reduced housing options. This systemic bias not only violates principles of equality and fairness but also contributes to social segregation and the perpetuation of socioeconomic disparities within the city.

The housing crisis has a deep effect on different groups of people in Berlin. Foreigners such as international students and skilled workers struggle the most. Refugees and asylum seekers on the other hand struggle even more, with about 25% of those who came in 2015/2016 still staying in government-run shelters because they can’t find permanent homes. War refugees from Ukraine coming in 2022 and expected asylum seekers in 2023 put even more strain on the housing market. Also, the lack of social housing units, which has hit an all-time low of just under 1.1 million across the country, leaves many at-risk groups without affordable places to live.

Redefining Coliving and Furnished Apartments in Berlin

KUMMUNI, has come up with new ideas to tackle the housing problem. The company’s method mixes personalization, openness, and tech to give tenants a one-of-a-kind living experience.

Zero Discrimination Policy

In direct response to the discrimination issues prevalent in Berlin’s housing market, KUMMUNI has implemented a comprehensive Zero Discrimination Policy. This policy is designed to create an inclusive and equitable housing market that provides equal opportunities for all potential tenants. The company operates on a transparent first-come, first-served basis, ensuring that all applicants receive fair and equal treatment throughout the rental process.

KUMMUNI’s Zero Discrimination Policy explicitly prohibits any form of discrimination based on protected characteristics, including but not limited to race, ethnic background, religious beliefs, gender identity, sexual orientation, age, and disability. This commitment to inclusivity not only aligns with ethical business practices but also contributes to the creation of diverse and vibrant communities within KUMMUNI’s properties.

Living spaces you can make your own

A distinguishing feature of KUMMUNI’s approach is the unprecedented level of customization it offers. This degree of personalization is unparalleled in other coliving spaces in Berlin or globally. Through the innovative “Choose Your Style” program, KUMMUNI empowers tenants to select their own furniture for their rooms at no additional cost. This unique offering allows residents to curate their living spaces to reflect their individual personalities and preferences.

The flexibility extends to room types as well. KUMMUNI offers a range of options including Junior, Senior, and Presidential rooms, catering to different needs and budgets. For those opting for Senior rooms, the customization goes a step further, allowing tenants to choose the paint color for their walls. This level of personalization transforms each living space into a true reflection of its occupant’s style and taste.

The “Choose Your Style” program not only enhances the living experience for tenants but also addresses a common pain point in traditional rental markets – the impersonal nature of pre-furnished apartments. By allowing residents to make design choices, KUMMUNI fosters a stronger sense of ownership and attachment to the living space, potentially leading to longer tenancies and a more stable community.

Technology-driven approach

KUMMUNI leverages cutting-edge technology to combat housing discrimination and streamline the rental process. The company has implemented an algorithm-assisted fairness system that removes potential biases from the application review process. Applications are initially processed by this system and then reviewed by a trained financial supervisor who evaluates them without access to potentially discriminatory information.

This technology-driven approach ensures consistent and fair decision-making across all applications, reducing the potential for human bias to influence housing outcomes. Additionally, KUMMUNI provides multilingual support and personalized assistance, utilizing technology to help clients identify apartments that meet their specific needs and budget constraints.

The company’s use of technology extends beyond the application process. KUMMUNI employs digital platforms to facilitate community engagement among tenants, streamline maintenance requests, and provide real-time updates on available units. This technological integration not only enhances the efficiency of KUMMUNI’s operations but also improves the overall tenant experience.

Affordable pricing model

KUMMUNI has put into action a one-of-a-kind and fair pricing system. It bases prices on apartment size instead of things like location, floor, or view. This method leads to more equal pricing for tenants.

In Berlin, the average rent for 350 sqft private furnished studio apartments through KUMMUNI starts at 860 euros, while 430 sqft private rooms in a shared apartment with 700 sqft fully furnished shared living room, two bathrooms, can cost maximum €1000 per month. This pricing structure, combined with the company’s furnished living spaces and customization options, provides an attractive and cost-effective solution to Berlin’s housing challenges.

The affordability of KUMMUNI’s offerings is particularly significant in the context of Berlin’s housing crisis. As the city grapples with rising rents and a shortage of affordable housing, KUMMUNI’s pricing model offers a viable alternative for those seeking quality accommodation. This is especially relevant for students looking for student accommodation in Berlin, as well as individuals interested in coliving in Berlin.

“We, as a company driven by profit, refuse to exploit the plight of individuals by inflating apartment prices. Unlike many of our competitors who capitalize on Berlin’s housing crisis, we strive to negotiate fairer terms with property owners instead of demanding more from the tenants. Our profits suffice; our practices adhere to ethical standards. We lease below market value and offer competitive rates,” says Toomaj Freydouny- Shareholder and the CEO of KUMMUNI.

KUMMUNI’s innovative approach to Berlin’s housing crisis could significantly impact the real estate market. Providing customizable living spaces, implementing non-discriminatory policies, and leveraging technology to address diverse challenges, the company offers affordable housing solutions that foster community.

KUMMUNI is working to ease the housing crunch while building welcoming living spaces by addressing and combating discrimination in the market. By using a special pricing plan and letting people pick their own furniture, they aim to create inclusive and comfortable environments for all. As the company keeps growing and evolving, it’s set to play a key part in molding the future of housing in Germany. It might even become an example for other states facing similar problems.