Addressing the acute housing shortage, a leading figure from the Christian Democratic Union (CDU) has called for a renewed focus on company-provided housing, urging the governing coalition to take action.
Dennis Radtke, Chairman of the Christian Democratic Workers’ Association (CDA), emphasized the need for tax incentives that would encourage businesses to offer on-site accommodation for their employees. This call comes amid repeated warnings from business leaders who have highlighted the threat of the ongoing housing scarcity impacting the recruitment of skilled workers and, consequently, weakening the German economy.
Radtke described the challenges within the housing and rental market as “the real new social question”. He cautioned that if centrist political parties fail to deliver solutions, the repercussions could be felt by political institutions and those who do not uphold democratic values.
He advocated for policies aimed at enabling a greater number of individuals to acquire homeownership. Radtke suggested exploring models similar to Austria’s “rent-to-own” system, where individuals initially rent a property before eventually paying it off in installments.
Furthermore, he argued that construction costs need to be reduced overall. “We need an initiative to promote homeownership” Radtke stated. He attributed the rising costs to excessive bureaucracy and regulations, which have doubled construction expenses over the past decade. Currently, only high-earning individuals or those with inherited wealth can afford to purchase land and build a home.