Changing policy responses to shrinkage: The case of dealing with housing vacancies in Eastern Germany

•Housing vacancies are a consequence of population shrinkage in Eastern Germany.•More differentiation in policy responses to vacancies than the literature suggests.•Initially the regaining of the housing market equilibrium was the main objective.•The desired changes in spatial patterns of urban populations were not achieved.•New approach seeks to adapt urban regeneration to shrinkage conditions.

This paper takes a look at the implementation of policies under shrinkage conditions using the example of one of the largest federally supported urban policies in Germany. The Urban Restructuring Programme was initiated in the year 2001 as a response to the problem of extraordinarily high vacancies in the eastern part of the country. While earlier publications on the subject suggested that this policy was predominantly oriented towards demolition of vacant units, in this paper it is argued that this view should be revised. It is demonstrated that both the problem of housing vacancies and policy responses were substantially differentiated regionally. Further, it is highlighted how the policy has gradually changed over time, as its focus shifted from demolitions towards a new approach which seeks to adapt the mechanisms of urban regeneration to the conditions of shrinkage. Finally, the question is asked to what extent the new approach will turn out to be successful in the light of current demographic trends in Eastern Germany.