In the district of Cloppenburg, craftsmen have raised their concerns about the construction industry's predicament with an unconventional wall-building campaign. On a Friday, tradespeople erected symbolic barriers outside several town halls, declaring, "We are creating the future for society." The housing scarcity is precipitating social upheavals, and employment in construction is also at risk. Despite recurring promises from federal politicians, no significant improvement has occurred thus far.
The Landesvereinigung Bauwirtschaft has penned down concrete proposals to aid the ailing construction sector, battling inflation, higher interest rates, material price surges, and reduced federal subsidies. Yet, despite bilateral agreements at construction summits and politicians' declarations, meaningful action has been absent. The Lower Saxony Construction Industry Association denounced the indifference of politicians and administrators towards the construction sector's predicament.
The construction industry emphasizes the need for a stable financial foundation, incorporating measures like low-interest KfW loans for new buildings, a property tax suspension, and less bureaucratic funding regulations. The local housing policy should address the prevailing crisis to safeguard future housing and generate employment, thus averting the disastrous consequences of the housing shortage.
Further Insights:
The construction crisis in Germany is a pressing issue, and the DIHK (German Chamber of Commerce and Industry) and other industry associations advocate for solutions. These strategies encompass reducing bureaucracy, improving funding, simplifying regulatory environments, and boosting affordable housing solutions. Let's explore some fundamental economic policies to help alleviate the crisis:
- Streamline Planning and Approval Procedures:
- Digitalization and less bureaucracy can help simplify planning and approval processes, reducing time and costs.
- Reduce Construction Costs:
- Simplify building regulations and cut costs through enhanced densification, integrated development, and utilizing brownfield and conversion sites.
- Provide Additional Funding for Housing:
- Tax relief, funding programs, individual funding, and housing allowance adjustments can encourage investment in housing institutions and support low-income families.
- Enhance Regulatory Flexibility:
- Temporary special regulations, presumed approvals, and promoting socially mixed residential areas can improve construction projects' flow and reduce delays in the approval process.
- Strengthen Municipal Pre-emption Right:
- Extending the municipal pre-emption right can guarantee a stronger say in public land allocation for municipalities.
These strategies help tackle the core issues of the construction crisis in Germany by streamlining procedures, lowering costs, boosting funding, and enhancing regulatory flexibility.
