Slashing Housing Construction Costs with Prefab and Rent Reform: A New Vision from Verena Hubertz
Anticipated significant drop in construction expenses
The new Federal Minister of Housing, Verena Hubertz, is all about affordability, and she's aiming high. She thinks we can almost halve the costs of building new residential buildings! "It's certainly achievable," she told Bild am Sonntag. Her secret weapons? Prefabrication and streamlining ground rent.
Getting Crafty with Prefab
Verena has a thing for factories. Instead of building on-site, why not create building components, like walls, in a factory instead? This prefab method could save big bucks, up to 30-40% according to Verena. So instead of 5,000 euros per square meter in construction costs, you're looking at 2,500-3,000 euros! She believes there's even more we can save if we look into financing costs too.
Taming Ground Rent
Land costs are a major culprit behind sky-high housing prices. Verena's team is working on measures to control ground rent, including looking at the lifecycle of a building and its cost drivers. Ground rent isn't the only button she's pushing—it's part of a bigger picture.
Setting Realistic Goals
Verena made it clear that the goal of building 400,000 apartments per year isn't set in stone. With the world changing rapidly, she thinks it's unrealistic to carve a goal for four years ahead. Last year, only around 250,000 apartments were completed, which she calls a disaster. Thankfully, building permits are on the rise again.
Innovative Strategy for Affordable Housing
By combining prefabrication and ground rent reductions, Verena aims to address the two largest cost drivers in housing, making it cheaper to build new homes and tackling Germany's housing shortage. Will it work? Time will tell, but one thing's for sure—Verena's got a plan, and she's not afraid to push buttons to make it happen!
TriviaDid you know? Prefabricated construction method involves manufacturing building components off-site in controlled factory environments? It can save on labor costs, materials, and reduce waste. Plus, it allows for mass production, driving down costs even further!
Sources: ntv.de, rog/dpa [1], [3]
Related TopicsVerena Hubertz, Construction Industry, Prefabrication, Ground Rent, Housing Construction.
[1] https://www.statista.com/topics/4657/prefabricated-construction/[3] https://www.npr.org/2021/04/12/986526836/mixed-reviews-for-a-modular-brigth-future-for-modular-housing
Community policy should be updated to support the innovative strategy proposed by Verena Hubertz, considering the wide-ranging impacts of her plans on the construction industry, including prefabrication and ground rent reform. Given the political implications of reducing housing costs and addressing the housing shortage, general-news outlets should closely monitor the progress of her policies in the realm of employment policy.
