A broad coalition of industry stakeholders in the construction and real estate sectors is raising concerns about a potential standstill in residential construction and urging the German federal government to take decisive action. In a joint letter addressed to government representatives and parliamentarians and reported by the “Redaktionsnetzwerk Deutschland” newspapers, the group expresses disappointment regarding the anticipated boost from planned housing construction stimulus measures.
The 28 associations and organizations, including the IG Bau construction union, the BFD real estate association and the Federal Chamber of Architects, warn of a further decline in new construction projects. Current industry estimates project approximately 200,000 new residential units this year – nearly 50,000 fewer than were built in 2024.
The coalition, operating under the banner “Impulse for Residential Construction” is calling on the government to intervene. Specific demands include significantly increased funding for social housing construction and the availability of additional land designated for residential development. The group emphasizes the need to simplify and broaden existing support programs. Furthermore, they are urging the government to uphold promises made in the coalition agreement, particularly regarding tax relief measures. A key request is to substantially increase residential construction funding within the federal budget, notably for 2026.
In a corresponding statement, the coalition voiced alarm over the ongoing erosion of the construction sector’s capacity, citing a three-year decline in employment within residential building and a rise in construction-related insolvencies. They argue that policymakers must urgently shift direction and re-stimulate residential construction as a key driver of domestic economic growth.
The coalition notes that a promised acceleration in housing construction, initially anticipated during the first 20 weeks of the current coalition government, has yet to materialize. They criticize that current budgetary planning falls short of providing adequate support for the residential sector and underscore the importance of honoring the commitments made in the coalition agreement through diligent allocation of resources within the federal budget.
