Largest housing deficit in twenty years

Germany lacks 700,000 flats - especially affordable flats and social housing. This is the largest housing deficit in more than twenty years.

The alliance "Soziales Wohnen" (Social Housing) consisting of the tenants' association, the building trade union, social and industry associations of the building industry has warned of a "new and frightening shortage of social housing" this year. With this statement, the alliance refers to a housing construction study by the Pestel Institute in Hanover and the construction research institute ARGE in Kiel. The study has identified a record housing deficit of more than 700,000 missing flats for 2023. In response to the results of the study, the Alliance calls on the federal government and the Länder to launch a joint "social housing construction offensive". The state must urgently create a special fund for "social housing", the alliance partners demand.

The largest housing deficit in more than twenty years also concerns the research institute bulwiengesa. It suggests that subsidised housing should increasingly be seen as an investment. For years, investors had given subsidised housing a wide berth, but the turnaround in interest rates has now made investments in this sector more attractive again.

The creation of affordable housing is one of the biggest challenges of the decade. The federal government's goal of building around 400,000 new flats per year, 100,000 of them social housing, is ambitious and unlikely to be achieved because of the changed conditions in housing construction. In any case, the municipal housing associations are not in a position to realise the goal on their own. Private capital on a large scale is necessary and can make an important contribution to solving the social problem.

Specifically, bulwiengesa suggests: "The targeted promotion of existing properties, for example with expiring rent control or also through changes of use, can make an important contribution to increasing the supply of social rented housing". The change from object to subject promotion is another way to make housing affordable again, especially in the big cities.

(Photo: © ArtisticOperations, Pixabay)