Building permits collapsed
Left leader demands 20 billion for housing construction
April 19, 2024, 9:41 a.m
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The number of building permits is falling and the housing shortage in Germany is growing. Left leader Wissler sees the federal government as having a duty and is calling for a fund worth billions. She has specific ideas about how the money could be used to help build up to 150,000 apartments.
In view of falling building permits, Left Party leader Janine Wissler is calling for the federal government to set up a 20 billion euro housing construction fund. The decline in building permits reported by the Federal Statistical Office is an alarm signal that the federal government cannot ignore again, said Wissler. “Today’s lack of building permits is tomorrow’s housing crisis.” Anyone who wants affordable housing should not rely on the market.
In Wissler’s opinion, the proposed 20 billion euros could be used to finance a whole package of measures, such as tax breaks or targeted funding and the purchase of building land. “Where speculators refuse to hand over unused building land at affordable prices, the land must be expropriated,” she demanded. According to the Left, the 20 billion euros per year could be used to subsidize 150,000 apartments.
Rising interest rates, expensive materials
Despite the high demand for living space in Germany, the number of building permits also fell in February, as reported by the Federal Statistical Office. The construction of 18,200 apartments was approved in the month, which was 18.3 percent or 4,100 approvals fewer than in the same period last year. Compared to February 2022, the number of building permits fell by more than a third.
Given the increased interest rates and expensive materials, housing construction is in crisis. Private developers and large investors are holding back. Building permits have been going downhill for months. Associations in the construction and real estate industry are pushing for more subsidies from the federal government.