Consultation on the matter has also involved the Commission.
In recent times, the housing industry in Germany has been grappling with a series of challenges, particularly concerning affordability and availability.
The socially oriented housing industry, for instance, has been hampered by the difficulty in constructing cost-covering apartments. If all the requested promotion funds had been granted, they could have started 30 percent more subsidized apartments last year. The average cold rent for these apartments is significantly below the national average, standing at 7.30 euros. However, the self-image of the housing companies does not align with cost-covering rents of 18 to 20 euros per square meter, which are considered unfeasible by the association of around 200 private and public housing companies.
Skilled workers and students are among those finding it difficult to secure affordable housing. The lack of affordable housing in proximity to attractive jobs is causing companies to struggle with filling these positions. This housing shortage is not only affecting individuals but also slowing down economic growth.
The board member of the German Housing Association (VdW), Axel Tausendpfund, has expressed a grim outlook, stating that the future for more living space is "devastating." He has called upon politics to take action. In particular, he has advocated for an increase in funding for the housing industry in economically strong states like Hesse.
The revision of the building code offers potential solutions to make building faster, easier, and cheaper. This could potentially alleviate some of the pressures faced by the housing industry. However, the name of the VdW committee member demanding a revision of the Housing Construction Act and an increase in funding remains unspecified.
In the first half of the year, there was a slight increase in the number of new apartments approved, with 7,739 new apartments being given the green light, representing a 1.1% increase compared to the previous year. While this is a small step in the right direction, it is clear that more needs to be done to address the housing crisis in Germany.
As the housing crisis continues to escalate, it is essential that politics and the housing industry work together to find sustainable solutions. The future of Germany's economic growth may well depend on it.
