BERLIN – An alliance of tenant associations, construction unions and social-industrial associations on Tuesday called on the authorities to urgently ensure conditions for building housing for low-income people.

Citing a study by the Pestel Institute in Hanover, the Social Housing association (Soziales Wohnen) estimated that 910,000 social housing units are missing.

At the end of 2022, Germany had 1.088 million social housing units, according to institute data. Social Housing estimates that by 2030, two million units will be needed just to return to the situation from 2007.

The states of Baden-Württemberg, Bavaria and Berlin have the largest deficit of social housing, with 206,000, 195,000 and 131,000 respectively.

The association demands that the federal and state governments provide 50 billion euros for construction, warning that this is the only way Germany can meet the government's target of 100,000 new social housing units per year.

In addition, it proposes reducing value added tax from the standard 19 to seven percent on social housing.

The government should long ago have admitted that it would not fulfill the promise it made at the beginning of its term and ensure conditions for the construction of 400,000 housing units per year, of which a quarter were supposed to be social housing.

The plan was hindered by supply bottlenecks, labor shortages, and later inflation and rising interest rates.

The rent price of social housing in Germany is regulated by the government. These apartments may only be rented by people with incomes below a certain limit.

However, after some time owners of social housing gain the right to rent at market conditions, so the number of such apartments has been decreasing for years.

Source: seebiz.eu