Rural housing after the end of coal. The case of Boxberg (Upper Lusatia, Germany)

Abstract

Many rural areas are currently experiencing the effects of the transformation of energy systems. Consequently, these regions are faced with far-reaching economic and social challenges. However, in the vast literature on energy transitions, their impact on the housing market in rural communities has been relatively unexplored. This paper discusses the opportunities for, as well as constraints on, housing in Boxberg, a rural municipality in the East German lignite mining area of Lusatia. The decision to phase out the use of coal has affected the community's housing market, leading to declining demand and rental property vacancies, on the one hand. On the other hand, public funding for coping with structural change has helped the municipality establish new economic activities and contributed to increasing demand in certain segments of the local housing market. Our research shows that the provision of local infrastructure and social cohesion in the municipality are decisive for both of these trends. Furthermore, our empirical findings illustrate the importance of having public institutions that have the resources to intervene in the housing market. Therefore, the question of what happens to rural housing after the transition away from coal is complete is also related to economic, infrastructural and political issues. Future research should consider linking the debates on energy transition and housing in rural contexts more systematically.