The Industrial Union of Construction, Agriculture and Environment (IG BAU) warns that the number of newly built apartments will fall to below 200 000, according to its chief, Robert Feiger, in an interview with the “Redaktionsnetzwerk Deutschland” on Thursday. He says this figure is less than half of what is actually needed, and it draws a red line under the housing supply.
Feiger’s estimate is based on an analysis of several construction indicators, including pre‑orders for building materials and industry surveys. He stresses that, in addition to new social housing, affordable homes are essential for a functioning labour market and for attracting skilled workers. “When the baby boomers retire, the people who will take over their jobs must also be able to live” he said. “Today, many workers commute for hours and across long distances. The people who can afford housing the least are suffering the most from the housing shortage”.
The union’s leader also warned of the broader economic fallout from the housing crisis. “Every seventh job and every seventh Euro of gross value added is tied to housing construction” he explained. “Without a significant increase in housing output, there will be no economic recovery. More housing is the key to growth and is essential for the economic transition the federal government has promised”. He urged the government to now “push hard on housing as the decisive driver of domestic economic activity”.
Feiger made these remarks just before the Housing Day event, scheduled for Thursday in Berlin, where seven leading industry associations and organisations will convene to discuss the urgent need for action.
