Considering the years of stagnation in new construction across Germany, housing and economics expert Matthias Günther, from the Pestel Institute, has called for the reintroduction of the former “Baukindergeld” (housing allowance for families with children). Speaking to the “Rheinische Post”, Günther recalled that the benefit was a “true success story” lamenting that the program quietly disappeared in 2021. He stated that reinstating the subsidy would be an excellent measure. The Baukindergeld was a state subsidy provided by KfW that supported families with children up to a certain income limit when purchasing or building owner-occupied homes. Günther noted that, according to an evaluation, the state gained three Euros for every subsidized Euro because increased construction activity boosted revenue. Furthermore, the program successfully reached low-income households who tended to opt for more affordable housing, which he considers precisely what is needed.
However, the economist criticized a separate proposal: the concept of the SPD introducing a state-owned housing corporation. Günther voiced his skepticism, arguing that it makes little sense to found a state enterprise open to external investors. Since external investors always expect a return on their investment, the pursuit of maximum returns would undermine the core goal of the housing corporation-keeping living costs affordable through state means. Instead of this new venture, Günther suggested that it would be more sensible for the state to take over an already established company, such as Vonovia.