Addressing the ongoing housing shortage, a leading figure within the Christian Democratic Union (CDU) is urging the ruling coalition government to revive the practice of company-provided housing.
Dennis Radtke, Chairman of the Christian Democratic Labour Association (CDA), argued in an interview with the “Neue Osnabrücker Zeitung” that businesses should be incentivized through tax breaks to offer on-site housing for their employees. This suggestion comes amid repeated warnings from employers concerned that the diminishing housing supply in Germany is hindering the recruitment of skilled workers and weakening the economy.
Radtke characterized the challenges in the housing and rental market as “the true new social question”. He cautioned that unless centrist political parties deliver tangible solutions, the consequences could be felt by parties and politicians who do not prioritize the stability of the democratic system.
He underscored the importance of facilitating homeownership for a greater number of people. Drawing on the Austrian model of “rent-to-own” where individuals initially rent a property before paying it off in installments, Radtke suggested it could be beneficial in Germany. He also expressed the need to reduce construction costs overall.
“We need an initiative to promote homeownership” Radtke stated. “Bureaucracy and regulations have doubled construction costs in the last decade. Today, only top earners or inheritors can afford to purchase land and build a house”.
