Rising construction and property costs are prompting calls for significant government assistance in homeownership, particularly from within the Christian Democratic Union (CDU) labor association, CDA.
Speaking to the Redaktionsnetzwerk Deutschland, CDA leader Dennis Radtke highlighted Germany’s comparatively low homeownership rate within Europe. He emphasized the increasing difficulty for individuals who do not benefit from inheritance or financial support from family to acquire property.
The CDA is advocating for a comprehensive package of measures designed to ease the burden of homeownership. Key proposals include a reduction of at least one-third of current building regulations, which the CDA argues have contributed to escalating costs. Specifically, the organization is requesting the elimination of a 19% value-added tax on the construction costs of a first-time owner-occupied property. Furthermore, they propose a decrease in property acquisition tax and the facilitation of rent-to-own models.
Radtke stressed the importance of ensuring homeownership is attainable for a broader segment of the population, beyond highly educated individuals with high incomes. He underscored the value of property ownership as a form of retirement provision. The CDU’s labor wing will be discussing these issues further at a federal committee meeting in Frankfurt this Saturday.
