Construction Industry Urges Government to Ramp Up Housing Development

The construction sector is calling on the new government to prioritize the creation of affordable housing. In a recent statement, seven industry associations highlighted the insufficient focus on affordable living spaces in the coalition negotiations between the Union and the SPD.

These associations emphasize the critical economic role that housing construction plays in driving domestic economic growth. They appeal to the negotiating teams to ensure that the coalition agreement reflects this importance, insisting that immediate action is needed to boost housing development.

They propose ambitious goals, advocating for the construction of 100,000 social housing units annually, with a maximum cold rent of EUR8.50 per square meter, alongside 60,000 affordable homes with rents ranging from EUR10 to EUR12.50 per square meter. To achieve these targets, they estimate that a total of EUR15 billion in funding from both federal and state governments is necessary for social housing, in addition to another EUR8 billion for affordable housing projects.

Industry representatives argue that individuals reliant on affordable housing cannot accept the current stagnation in construction activity. The call to action includes participation from various organizations, such as the construction union IG BAU, the German Tenants' Association, and several other prominent associations within the housing and construction sectors.

As coalition discussions commence, housing will be addressed within a working group that also covers building, transportation, and infrastructure topics. This follows the previous government's unsuccessful target to build approximately 400,000 new homes annually, a goal that was not met in any year. In 2024, only around 172,100 new residential units were approved, representing a decline of nearly 20% from 2023.