In an effort to resolve the housing crisis in Germany, Christian Social Union (CSU) parliamentary group vice-chairman Ulrich Lange has called for the preservation of the Federal Ministry of Building, established just three years ago, but still a subject of controversy. According to reports by the Mediengruppe Bayern, Lange wrote in a paper that the Federal Ministry of Building should remain in place after the 2025 federal election, but with the ability to take effective action and drive the construction and housing sectors forward.
To achieve this, Lange suggests transferring necessary competencies from other federal ministries to the Federal Ministry of Building. He also proposes temporarily placing the construction and housing sectors under state control, citing the principle of “private before state” but acknowledging that the state must intervene in cases of market failure, as seen in the construction and housing sectors.
Lange suggests that the Federal Ministry of Building should be allowed to build itself in areas with tight housing markets, financed in part by the earnings of the Federal Agency for Real Estate (BIMA). “The housing shortage is not only a pressing social issue, but also an economic one” Lange said. “We must resolve this, or it will escalate. In the construction industry, there is almost as much economic power as in the automotive industry. Therefore, I propose that the federal government take a stronger lead in housing construction.”
The background to this proposal is that CDU leader Friedrich Merz, should he become Chancellor, has promised a digital ministry, but with no increase in the number of houses. This would require a department to be displaced and the Federal Ministry of Building is a prime candidate. It is likely that this ministry would be the one to be affected.