Germany’s housing sector has fallen behind, prompting Federal Building Minister Verena Hubertz to propose creating a federal housing company of her own. She said the idea could be a “gamechanger” adding that the current Bundesanstalt für Immobilienaufgaben (Bima) mainly serves federal employees, while the country needs housing for everyone. According to Hubertz, the new enterprise would put German housing construction on a stronger footing.
Federal Finance Minister Lars Klingbeil echoed this sentiment in a speech at the Bertelsmann Foundation on Wednesday, arguing that the federal government should be able to build apartments on a large scale. He suggested a state-owned housing company as a solution, noting that implementing the plan would require constitutional amendments-an observation repeated by Hubertz during the Federal Housing Day in Berlin the previous Thursday.
Hubertz explained that discussions are already underway about the reforms needed to make this possible, as well as additional regulations that might be required. She stressed that a single measure would not suffice; a broader reform package is necessary. These deliberations are expected to continue through the summer.
On the political front, Hubertz addressed the SPD’s recent setbacks in state elections in Baden-Württemberg and Rhineland‑Palatinate. She criticized the party for presenting a “long‑standing image of reform blockers” and emphasized the need for the SPD to deliver reforms in the short term, while also developing a long‑term vision. She remains confident that the party must revive the promise of upward mobility: that with dedication, people can afford a decent home or apartment.