Housing construction comes to a standstill

Created: 11/08/2022 10:52 am

By: Thomas Zimmerly

The housing association in the Dachau region has to correct its goals downwards.

She can't build that much anymore.

(Iconic image) © IMAGO/Michael Gstettenbauer

High construction prices and interest burden the housing association in the district of Dachau.

Dachau – The Wohnungsbaugesellschaft mbH in the district of Dachau (WLD) is currently having major problems fulfilling its purpose.

This became clear in the report for the 2021 financial year, which Managing Director Stefan Reith presented in the district council.

The WLD builds apartments and makes them available to district citizens at affordable rents.

The municipalities should provide or mediate plots of land that can be built on.

WLD has to lower its target by 100 apartments

Last year, the "Housing for Seniors" house with 20 units was completed in Röhrmoos.

And work has begun on two asylum shelters in Schwabhausen and Erdweg and on a house with ten apartments in Indersdorf.

But now there is trouble.

According to Reith, until January of this year, WLD still had a plan to build a total of 650 apartments by 2035.

Those responsible at WLD have meanwhile had to “screw down by 100 apartments” according to the managing director.

"We will no longer be able to maintain the growth course that we have set in the last five or six years," Reith continues, "because the extreme construction costs, but also the interest rates are a huge burden." His WLD simply could no longer do it build so much.

Reith: "I don't want to say that housing construction is dead, but it is very, very burdened."

The WLD house builders are in a quandary, because the rents they receive - even in the subsidized area - are fixed.

They are 12 euros in Karlsfeld and slightly less in the rural districts.

Managing Director Reith: "We don't get a cent more in rent." District administrator Stefan Löwl added that the income was no longer even in the black.

Many private individuals can no longer afford to build

Housing construction is dying because it doesn't pay off, Löwl continued.

The bad thing is that the same is happening in the private market.

"If you talk to the savings bank or the Volksbank, there will no longer be built there either," said the district administrator.

"The developers finish what they have started and wait for projects where it works." And private individuals who want something of their own?

"Nine out of ten leave the savings bank and say that they can no longer afford to build because the yield curves are so high and there is uncertainty about what will happen," says Stefan Löwl.

Löwl doubts the commitments of the housing alliance

Then the district administrator sent a tip to Berlin, where Chancellor Olaf Scholz had announced that he would be able to create 400,000 new apartments in Germany per year as part of the "Alliance for Affordable Housing".

Löwl inquired and found out that around 600 to 650 apartments should jump out every year as part of the initiative for the Dachau district.

But: "We don't know how these 400,000 apartments will come across Germany," says Löwl, looking at the current situation.

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You can find more current news from the district of Dachau at Merkur.de/Dachau.