Bad mood in the housing industry: The members of the Association of Bavarian Housing Companies (VdW Bayern) want to significantly reduce their new construction activities in 2024. This was the result of an internal survey published by the association in Munich on Wednesday.
According to this, around 4,500 apartments will be completed in 2023, but then the growth phase of the socially oriented housing industry that has been ongoing since 2015 will come to an end. 40 percent of the 506 association members planned to reduce their investments in the new building. Modernization measures are also affected by the cuts. Almost every third company will make cuts. The companies cited increased financing interest rates, a lack of reliability in funding and insufficient funding as the biggest obstacles to construction.
According to VdW Bavaria, 506 socially oriented housing companies are brought together, including 354 cooperatives and 108 municipal housing companies. The member companies managed around 546,000 apartments, in which a fifth of all Bavarian tenants lived. According to the statement, only 55 percent of housing companies rate their current business situation as very good or good. The proportion of respondents who rated their situation as bad increased from six to nine percent compared to the previous year.
Association director Hans Maier also blamed the current funding chaos surrounding KfW’s housing programs for the frustration in the industry. “After the funding for cooperative living was stopped at the end of November, the program for climate-friendly new buildings has now also been affected,” criticized Maier. All of these developments caused planning uncertainty.