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Change of course by the Chancellor – 400,000 new apartments are not enough

2024-02-08T10:24:04.488Z

Highlights: Change of course by the Chancellor – 400,000 new apartments are not enough. Pestel Institute found in a study that there is a shortage of over 910,000 social housing units in Germany. Federal Construction Minister Klara Geywitz expects around 265,000 completed apartments to be completed in 2024. According to estimates by the Munich Ifo Institute, around 225,000New apartments will be built in 2024, that would be a decrease of 45,000 apartments. The Social Housing Alliance called for a special budget of 50 billion euros to implement the federal government's plans.



As of: February 8, 2024, 11:06 a.m

By: Lars-Eric Nievelstein

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The federal government originally wanted to build 400,000 new apartments.

Associations had warned that this number was far from enough.

Now Chancellor Olaf Scholz speaks up - and changes course.

Stahnsdorf – It was only in mid-January that the question of social housing caused a stir.

The renowned Pestel Institute, which has been studying the housing market for decades, found in a study that there is a shortage of over 910,000 social housing units in Germany.

Federal Construction Minister Klara Geywitz (SPD) didn't want to believe that.

She said on ARD: “The numbers were made up by colleagues.”

The government was targeting 400,000 apartments annually.

Now, almost a month later, Chancellor Olaf Scholz had a change of heart.

New housing targeted by the government

400,000 per year

Of these, state-subsidized apartments

100,000

Current forecast for 2024

265,000 apartments

Change of course by the Chancellor – 400,000 apartments “rather too few than too many”

At a citizens' dialogue in Stahnsdorf, Brandenburg, Scholz deviated from the original target.

The traffic light coalition actually wanted to build 400,000 new apartments every year - this number was circulating for a long time, but seemed utopian given the current construction output.

The Chancellor now spoke of the fact that the 400,000 apartments represent the “lower limit of demand”.

With this level of construction work, “too few rather than too many” apartments would be created.

Change of course by the Chancellor – 400,000 new apartments are not enough © IMAGO/Sebastian Rau/photothek.de

According to Scholz, there are several reasons why this goal has so far remained unachieved.

One of them is a “psychological problem” caused by the rapid rise in interest rates in recent years.

However, he also criticized an “incredible miscalculation” by building too many expensive apartments.

Federal Construction Minister must reduce bureaucracy

A sometimes excessive bureaucracy is another problem.

Building Minister Klara Geywitz has to dismantle some regulations step by step.

Scholz also held the municipalities accountable.

“There cannot be more apartments without more building land, not without more density,” said Scholz – and the municipalities are responsible for designating building land.

These do not necessarily have to be entirely “fresh” building areas.

Municipalities and cities can demolish buildings that can be renovated on land that is rarely used in order to make better use of the land through new construction.

Matthias Günther from the Pestel Institute does not believe that cities will provide “fresh” areas for housing construction within the next ten years.

Instead, housing construction should be “completely” relocated to existing buildings.

“Densification, additions or conversions of office or retail space, for example, should provide sufficient space to create the necessary housing,” explained Günther.

Construction industry warns of housing shortage

There has been pessimism among representatives of the construction industry for a long time.

According to estimates by the Munich Ifo Institute, around 225,000 new apartments will be built in 2024.

Compared to 2023, that would be a decrease of 45,000 apartments.

Federal Construction Minister Geywitz expects around 265,000 completed apartments to be completed in 2024 - the SPD politician was referring to a forecast by the German Institute for Economic Research (DIW).

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These figures are not only far behind the federal government's actual target, but even further behind those presented by the Social Housing Alliance in January.

“Politicians have neglected social housing for decades,” summarized Matthias Günther from the Pestel Institute.

The alliance called for a special budget of 50 billion euros, which would be necessary to implement the federal government's plans.

With material from dpa

Source: merkur

All news articles on 2024-02-08

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