Construction Minister opposes establishment of housing corporations
Minister Hubertz Proposes Diverse Solutions for Housing Affordability and Supply
In a podcast by the Funke media group, German Minister for Housing, Verena Hubertz (SPD), discussed the housing shortage and proposed a comprehensive approach to address the issue. Unlike some suggestions of nationalizing housing companies, Hubertz's strategy focuses on a range of solutions, including innovative funding programs, climate-friendly construction, and promoting property ownership.
Hubertz believes that mistakes were made when municipalities sold their housing during financial struggles. Instead, she suggests a focus on creating new housing, rather than just buying back sold housing at a high price. She notes that building can include renovation, not just new construction.
One of the key initiatives Hubertz proposes is the "Klimafreundlicher Neubau im Niedrigpreissegment" (Climate-Friendly New Construction in the Low-Price Segment) program. Launching in October 2024, this subsidy aims to encourage sustainable and affordable housing construction by supporting low-cost, energy-efficient new buildings.
Hubertz also emphasizes the importance of homeownership as a means of securing retirement. She plans to enhance planning security for savings and property acquisition in collaboration with stakeholders through SPD party consultations.
To stabilize and increase building permits and construction activity, Hubertz points to recent trends in German housing approvals and market stabilization efforts overseen by her ministry.
While the topic of the podcast was the nationalization of housing companies, Hubertz is against this approach. She states that Germany builds too slowly, too expensively, and too little. However, she does not advocate for specific regions or for living in A or B. She does not express a preference for rural living over urban living.
Instead, Hubertz advocates for making living on the land more attractive. She believes that everyone should be free to choose their place of residence and does not subscribe to the idea of magical allocation of apartments due to a lack of supply.
In summary, while nationalization of large real estate portfolios is a debated approach, Hubertz’s broader strategy includes effective subsidies, climate-conscious construction support, and policies that improve access to homeownership and financial planning security, aimed at expanding affordable housing supply sustainably.
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