Shortly before the housing summit, the construction industry is demanding an aid package from the government. According to Chancellor Scholz, “very specific things” will be discussed at the meeting about how more apartments can be built.
Chancellor Olaf Scholz (SPD) is pushing for better conditions for the construction of affordable housing in Germany. To achieve this, regulations should be simplified and standardized “so that we can achieve serial construction and construction becomes even cheaper,” he said at an SPD election campaign rally in Nuremberg.
The Federal Chancellery has invited people to the “Affordable Housing Alliance Day” on Monday. It’s about how quickly and cheaply more apartments can be built. Federal Construction Minister Klara Geywitz (SPD) launched the format in spring 2022. Among other things, it should work on achieving the stated goal of 400,000 new apartments per year. However, mainly due to increased construction costs and interest rates, the construction industry is in crisis and the goal set is a long way off.
More building land and serial building
Scholz said the meeting should discuss “very specific things” about how more apartments can be built. Among other things, more building land is needed, which must be designated in the municipalities. Regarding serial construction, he said that car manufacturers do not approve each model individually in each district, but rather there is a general approval. “Why shouldn’t we be able to do this across Germany with the basic construction of houses? That would save considerable costs.” The apartments remained individual, as was the case with car orders.
With regard to the financing conditions, Scholz said: “It’s not the interest rates that are the problem.” The current level of around four percent is low compared, for example, to 9.5 percent in the early 1970s. The problem is that too many apartments have been built at prices that many cannot afford.
Construction Minister for a change of course Energy saving regulations
In an interview with the dpa news agency, Geywitz called for a departure from planned energy saving regulations for new residential buildings and for unrenovated older buildings. “I am against using mandatory minimum efficiency standards for buildings to scare owners of unrenovated houses into having to invest tens of thousands of euros,” said Geywitz, also with a view to EU plans.
A building efficiency directive is being discussed in Brussels that would require improvements, especially for houses with the worst energy values. The Federal Ministry of Economics also wants to prevent certain requirements. “We rule out mandatory renovations for individual residential buildings,” the “Spiegel” quoted from a statement.
Construction industry demands aid package
In view of the housing crisis, the construction industry is demanding an aid package from the federal government. “We need a Chancellor’s decision for more housing construction in Germany,” says a demand paper for the meeting on Monday, from which RTL and n-tv quote.
In the paper, the main association of the German construction industry calls for the property transfer tax to be reduced or temporarily suspended. Energy standards for new residential buildings are to be handled more relaxed than planned. Funding for new construction must be significantly expanded. “Without a construction package, housing construction will not get back on track in the short term,” it continues. “All construction indicators are pointing clearly downwards, and there is no trend reversal in sight.” There is a risk of workers leaving the industry.
“Average family must be able to finance property”
The Federal Association of German Prefabricated Buildings demanded that “the average family” should be able to finance home ownership again. “The income limit for new construction funding must therefore be increased immediately from 60,000 euros to at least 90,000 euros for families,” explained association boss Achim Hannott.
“People are expecting a lot of housing construction momentum,” explained the managing director of the Central Association of the German Construction Industry (ZDB), Felix Pakleppa. ZDB boss Pakleppa has high hopes for the top meeting in the Chancellery. “Never before has an entire sector of the economy looked forward to a meeting in political Berlin with such anticipation,” he explained. “The meeting will be a reality test for the government’s housing policy.”
“Need a real boost”
“What we need now is a real boost so that housing construction doesn’t collapse,” said IG Bau union leader Robert Feiger to the “Augsburger Allgemeine”. “Anything that is not financed now will be twice as expensive later,” he continued. The state must therefore now make funds available. Around 50 billion euros are needed for social housing. “Another 22 billion euros are needed in this legislative period to create housing that is affordable for people with middle incomes.” .
Hope already given up
Two important industry associations want to boycott the meeting on Monday: The Federal Association of German Housing and Real Estate Companies (GdW) and the owners’ association Haus & Grund canceled on Friday in protest against government policy. No tangible, positive result can be expected. Instead, they accused the federal government of planning an “primarily public” event.