In the face of sharply rising costs for real estate and rents, the SPD is to maintain its goal of building 400,000 new homes per year for the upcoming legislative period as well.
According to the “Bild”(Saturday edition), Federal Building Minister Klara Geywitz (SPD) stated, “We’re holding at 400,000. I could have said after the interest rate surge in the spring of 2022 that it won’t work, but I didn’t. I held on to it because we didn’t just have an interest rate surge, but we have a general productivity problem in the German construction industry and that’s where we need to start.”
Geywitz expressed satisfaction with the development over the past three years, stating that the SPD’s goal of 400,000 new homes per year had been almost three-quarters achieved in each of the years. To reach the goal of 400,000, various measures will be taken, including increased funding for builders. Moreover, “an absolute record sum will be invested in social housing”Geywitz said.
Another proposal by the minister is to introduce a 400-euro cap on rent. This means that if a shared apartment room costs more than 400 euros a month, the state will cover the rest. “The amount is not capped at the landlord’s.”It is possible to increase the allowance for students through the BAföG housing cost allowance. For example, if a room costs 1,000 euros, the apprentice or student would only have to pay 400 euros and the state would cover the remaining 600 euros.