German housing savings banks have sharply criticized the housing plans put forth by Federal Finance Minister Lars Klingbeil, specifically his proposal for a state-owned “Federal Company for Affordable Housing”. Leading industry representatives, speaking to the Handelsblatt, dismissed the project as unrealistic and warned that it risks setting false expectations among the public and families.
Speaking as chairman of the annual LBS Housing Savings Banks Conference, Stefan Siebert, CEO of LBS Süd, expressed deep skepticism regarding the establishment of a state-run construction company. He questioned the need for a nationwide entity, arguing that numerous municipal housing companies already exist. Siebert also cautioned that the public might mistakenly believe the state is guaranteeing sufficient affordable living space in the future-a claim he labeled “illusory”.
Klingbeil had originally suggested in April building a federal company to act as both a developer and a lender for residential projects. However, the housing savings banks doubt the financial feasibility of this scheme. According to Siebert’s assessment, generating noticeable effects in the housing market would require the federal government to commit enormous amounts of funding, leading critics to label the plans merely a “political pipe dream”. Instead, the industry contends that political efforts should focus on facilitating private investment and generally streamlining the housing construction sector.