A planned federal housing construction company, the “Bundeswohnungsbaugesellschaft,” is set to build 100,000 new apartments per year, according to sources within the government who informed our editorial team on Friday. The specific figures are expected to be officially announced during a cabinet session in Neuhardenberg next week.
Earlier, during a Coalition Committee meeting on July 1st, it was already decided to establish a “Housing Construction Company for Affordable Living” (WBG). The original goal, stated in the decision document, was to increase the construction of homes in the “affordable” price segment, addressing areas where the existing housing market fails to provide adequate affordable housing long-term. Currently, the Ministries of Finance and Construction are working on a detailed concept, which is due by the end of August.
This new target of 100,000 apartments per year significantly exceeds earlier considerations. For instance, Federal Finance Minister Lars Klingbeil (SPD) had stated back in May that if the state became heavily involved in construction, starting with a modest target of 10,000 units, it would create a “total scaling effect,” helping to bring down housing prices.
Experts generally agree that Germany requires between 300,000 and 400,000 new homes annually over the coming years, especially since only slightly over 200,000 were completed last year.
