The Christian Democratic Employees’ Association (CDA) is calling for substantial government intervention to address the escalating costs of homeownership in Germany. Citing the nation’s exceptionally low homeownership rate compared to other European countries, the CDA argues that acquiring property has become increasingly unattainable for those without inherited wealth or financial support from family.
Speaking to the Redaktionsnetzwerk Deutschland, CDA Chairman Dennis Radtke highlighted the widening gap between those who benefit from familial assistance and those who must rely solely on their earnings. He pointed to the significant rise in housing costs over the past decade, attributing it, in part, to an expanding array of building regulations deemed by some as unnecessarily complex and burdensome.
The CDA is proposing a series of measures aimed at increasing affordability. These include a reduction of at least one-third of existing building regulations, the elimination of the 19% value-added tax on construction costs for first-time homebuyers, a decrease in property acquisition taxes and the facilitation of rent-to-own purchase models.
Radtke emphasized that the aspiration should be to enable broader access to homeownership, extending beyond highly qualified academics with high incomes. He further added that owning a home also represents a valuable form of retirement planning. The CDA’s proposals are scheduled for discussion at a federal committee meeting in Frankfurt/Main this Saturday, with the goal of stimulating a wider debate on housing affordability and access in Germany.