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Residential construction in Hanover: Increased material costs, higher interest rates, lower state subsidies
Photo: Melissa Erichsen / dpa
In 2020, more than 300,000 new apartments were completed in Germany.
The federal government wants to increase this number to more than 400,000, including 100,000 social housing units.
However, according to the assessment of the Association of the German Housing Industry, the traffic light will clearly fail to achieve this goal.
"There is a risk of a crash with an announcement that the government will miss its housing goal with a bang," said association president Axel Gedaschko of the "Bild" newspaper.
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”.
Rents would have to rise by up to 60 percent
Most recently, new construction in Germany has already collapsed.
Project developers who plan entire residential or commercial areas are reluctant because they can hardly calculate.
Private householders are also canceling construction projects due to cost increases.
Cancellations are increasing in residential construction.
The German Construction Industry Association (ZDB) recently recorded a sharp drop in incoming orders, and the number of building permits issued has also fallen massively.
Gedaschko of the "Bild" cited the significantly increased material costs in construction, the 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.
However, the amount of the rental prices is regulated by law.
Gedaschko called on the federal government to cap the interest on building loans to one percent via the state bank KfW.
The federal government hopes to achieve its goal with around 190 measures that the construction industry, trade unions, federal states, municipalities and other associations in the "Alliance for Affordable Housing" agreed on in mid-October.
apr/dpa
