According to the General Association of the German Housing Industry, the federal government is failing in its promise to build 400,000 new homes every year. Association President Axel Gedaschko told the “Bild” newspaper: “There is a risk of a crash with an announcement that the government will miss its housing goal with a bang.”
Specifically, Gedaschko expects only around 250,000 newly built apartments in Germany this year. For 2023 he predicts the new construction of around 200,000 apartments, for “2024 even less”.
Gedaschko of the “Bild” cited the significantly increased material costs in construction, higher interest rates and reduced state subsidies as reasons for the significant decline. As a result, builders would have to charge up to 60 percent more rent than two years ago. He called on the federal government to cap the interest on building loans to one percent via the state bank KfW.
Regardless of the energy price crisis, the federal government wants to achieve the goal of 400,000 new apartments per year, including 100,000 social housing units. This is to be achieved with around 190 measures agreed in mid-October by the construction industry, trade unions, federal states, local authorities and other associations in the “Alliance for Affordable Housing”.
