In a joint letter addressed to government officials and parliament, 30 associations and organizations have issued a stark warning regarding the escalation of the housing construction crisis due to the planned 2027 federal budget. Citing the “Redaktionsnetzwerk Deutschland,” the letter states clearly: “This federal budget does not align with what is currently happening in the country regarding housing construction and on the housing markets.”
The 30 signatories, which include prominent groups such as the German Building Industry Association (HDB), the IG Bau labor union, and the German Tenants’ Association (Deutsche Mieterbund), stress that a fundamental shift in budgetary policy for housing construction is urgently required. The coalition specifically criticizes the intention to implement cuts to subsidies supporting new construction, cautioning that if the federal government reduces its support for housing construction now, it will result in a “boomerang” effect on the national economy.
The groups warn that the coming year must not become a period of “paralysis for new housing construction.” Their demands include strict opposition to any cuts in the 2027 budget targeting the building of affordable rental apartments. Furthermore, they insist that central government funds for social housing must be secured “permanently and at a high level.” Other demands include the government making greater availability of building land.
