In the past few weeks, one thing in particular has been discussed among housing politicians: the requirements for heating with renewable energies, which are to apply from 2024. On Thursday, an alliance of several housing and social associations as well as the building trade union tried to draw attention back to the federal government’s new construction targets – to how the target of 400,000 new apartments per year set by the traffic light coalition could at least come a little closer than is currently the case.
“The entire housing construction system is facing a crisis,” said Dietmar Walberg, Managing Director of the Working Group for Contemporary Building (ARGE), at the housing construction day in Berlin. A study by the building research institute comes to the conclusion that the construction of one square meter of living space in German cities now costs an average of almost 4240 euros, plus 909 euros apportioned property costs.
In privately financed residential construction, this amounts to rent levels of 17.50 to 20 euros per square meter. Since the year 2000, the construction costs and the ancillary costs have more than doubled, the costs of the technical expansion have even more than quadrupled. “We finally need to have a discussion about the standards,” Walberg said. “There shouldn’t be any taboos.”
Price development in residential construction and for building land
Price index 2000 = 100
One and two-family houses
Graphic: jbel. / Source: Working Group for Contemporary Building eV
An estimated 700,000 apartments are currently missing
In 2021, almost 293,400 apartments were completed in Germany. The Federal Statistical Office will only publish the figures for 2022 in May. Industry associations predict that there will be a significant decline in the coming year at the latest.
Because both the construction costs and the interest on real estate loans have risen so much, it is no longer possible to build economically, they argue. The General Association of the Housing Industry (GdW) recently expected that a third of the apartments that should be completed in 2023 and 2024 will no longer be built. According to estimates by the Pestel Institute, there is currently a shortage of 700,000 apartments in Germany. More immigration is likely to exacerbate the shortage.
The fact that Economics Minister Robert Habeck (Greens) cut state subsidies for new buildings in spring 2022 and made the previously subsidized KfW Efficiency House 55 standard the new mandatory new building standard for everyone was not well received in the construction industry.
Dirk Salewski, President of the Federal Association of Independent Real Estate and Housing Companies (BFW), considers the many regulations in the 16 state building codes in Germany to be a problem: “Why a Baden-Württemberger falls off the stairs faster than a Hessian is not clear to me.” However, the prescribed railing height differs by 10 centimetres. The “Building Type E” developed by Bavarian architects, which meets basic standards such as stability and fire protection, but otherwise gives the builders freedom, was praised at the housing construction day.
Politically, the trend is going in a different direction
Politically, the trend has so far been in a different direction. In many places it is now mandatory to equip every new building with a solar roof. Also popular are requirements that at least a third, sometimes even half of the apartments in a new building must be barrier-free. The federal government wants to make the efficiency house standard 40 mandatory for all new buildings by 2025 at the latest. The energy requirement may then only be 40 percent of that of a standard house.
As an immediate measure, the associations are demanding 50 billion euros in state support for the construction of social housing by 2025. A further 22 billion euros are needed for 60,000 apartments with a rent of between 8.50 euros and 12.50 euros. The 1.1 billion euros that Klara Geywitz’s (SPD) Ministry of Building can spend this year on subsidies for new buildings have almost been exhausted. According to a message from the ministry to the building committee, 685 million euros had already been paid out at the beginning of April, although the program for families is not scheduled to start until June. Geywitz said she was talking to the finance minister about continuing the funding.
Above all, she promised the industry more digitization. “We have so many regulations, it’s easier if the computer does the exam.” In addition, the 49-euro ticket could make life in the country more attractive. 1.7 million apartments are empty there. Economics Minister Robert Habeck (Greens) was open to using funds from the Economic Stabilization Fund (WSF) for the construction industry. “Those who wouldn’t otherwise build should be given support.”