The German prefabricated housing industry is cautiously optimistic about pricing following a period of significant cost increases, but a bitter dispute with a professional association is threatening financial stability and raising questions about government responsiveness. While acknowledging that material, labor and energy cost inflation previously drove up prices for consumers, Mathias Schäfer, President of the German Prefabricated Housing Association (BDF), indicated that the rate of increase is now leveling off, albeit without a prospect of significant price reductions.
The sector navigated a downturn in demand relatively well, avoiding widespread insolvencies. However, employment has fallen by 10%, underscoring the ongoing challenges within the industry.
The most pressing issue is a contentious legal battle with the BDF’s own professional association, centering on a reclassification into a new accident insurance risk tariff. The association intends to group prefabricated housing companies with carpenters under this “4th risk tariff” a move Schäfer characterizes as a flawed comparison – “like comparing bananas with lemons: both are yellow, but otherwise completely incompatible”. This automatic grouping is imposing a substantial financial burden, doubling insurance costs to approximately €1,000 per employee annually.
Seventy companies are currently pursuing legal action against the reclassification, anticipating cumulative additional costs of around €100 million over the next five years. Schäfer deems the move “unconscionable” and detrimental, particularly at a time when the industry is already struggling. He argues this reclassification hinders the sector’s ability to offer more affordable housing and is not justified by any demonstrable increase in workplace accidents.
Schäfer has publicly criticized Federal Labor Minister Bärbel Bas (SPD), asserting that a legal opinion from Professor Frauke Brosius-Gersdorf, which deemed the reclassification unlawful, was submitted to the relevant Federal Office for Social Security with no follow-up discussion. He accused Minister Bas of failing to ensure that official processes are even reviewed. Furthermore, the BDF reports receiving no response from the Federal Ministry of Construction.
This lack of engagement is perceived as deeply contradictory, especially considering government initiatives promoting faster, more reliable and sustainable building practices, while simultaneously erecting new regulatory barriers. The criticism suggests a disconnect between stated policy goals and the practical realities faced by crucial sectors within the German economy.