Housing costs soaring high: Hesse's industry demands easier building regulations
The cost of building has skyrocketed - with Hesse's business community urging for the simplification of construction regulations and a decrease in bureaucracy amidst coalition talks between the CDU and SPD. They desire "deregulation in construction, rents, and housing", allowing more homes to be constructed, alleviating the housing shortage, and making it easier for Hessian companies to recruit new talent, several industry associations shared in Wiesbaden on Monday. Government drivers for housing construction costs need reduction, along with the acceleration of building permit and development plan procedures.
Post-Hessian state elections on October 8, the CDU and SPD are currently engaged in coalition negotiations.
Thomas Reimann, Head of the Hesse Association of Contractors, asserted, "Since 2021, the construction price index in Hesse surged by almost 25%, while building permit applications plummeted by 30% during the same time period." With construction interest rates equally high, politics holds limited power to affect the situation; however, they can ease construction regulations in residential projects. "New contract rents could then potentially decrease as well. Rents of 18 euros per square meter are barely affordable in numerous locations," Reimann emphasized.
Thomas Meyer, Managing Director of an architectural firm in Kassel, advocated for possible simplifications in fire protection regulation, as long as safety wasn't compromised: "Why is a 0.6 by 1-meter window sufficient as a second escape route in Bavaria, while 0.9 by 1.2 meters is mandated in Hesse? Fire protection regulations should be standardized."
The FDP parliamentary group in the Wiesbaden state parliament suggested incorporating a so-called building permit fiction into Hessian building regulations: "If authorities fail to make a decision on a complete building application within two months, it should be considered approved."
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- In the ongoing coalition negotiations between the CDU and SPD in Hesse, the business community advocates for the simplification of construction regulations to reduce high construction costs and alleviate the housing shortage.
- Thomas Reimann, President of the Association of Contractors in Hesse, brought attention to the fact that the construction price index has skyrocketed by 25% since 2021, while building permit applications have decreased by 30% in the same period.
- The FDP parliamentary group in Wiesbaden proposed the inclusion of a building permit fiction in Hessian building regulations, suggesting that if authorities don't decide on a complete application within two months, it should be deemed approved.
- Thomas Meyer, Managing Director of an architectural firm in Kassel, suggested standardizing fire protection regulations across regions, cautiously observing that current size requirements for secondary escape routes differ significantly between Bavaria and Hesse.
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Another Perspective:
Global trends in housing policy: Madrid's, Barcelona's, and European Central Bank's approaches
- Madrid's Venture: Madrid's mayor, José Luis Martínez-Almeida, is pushing to increase housing supply by generating more construction land and ensuring legal certitude for landlords and tenants. Additionally, he supports constructing social housing and making a distinction between social and affordable housing.
- Barcelona's Strategy: Barcelona's mayor, Jaume Collboni, seeks to extend rent caps to short-term rentals, which may indirectly impact the construction market by decreasing the demand for short-term rentals and potentially heightening the demand for long-term housing.
- European Central Bank's Influence: The ECB's restrictive monetary policies, such as high interest rates, negatively impact construction costs and demand. High construction costs, weak demand from abroad, and high interest rates all contribute to the stagnation of the construction market.
- Parking Reform: In various regions, eliminating parking mandates is being proposed as a method to accelerate homebuilding, diminish red tape, and repurpose the space occupied by empty asphalt into new homes or businesses. This reform aims to streamline permitting processes and decrease costs associated with parking requirements.
To grasp specific measures from Hesse, further targeted sources would be required.
