The Thuringian Housing Industry Association is shouting loud and clear for a minimum of 150 million euros annually from the government, insisting it's essential to amplify new housing construction and renovation endeavors. The present economic climate, with skyrocketing costs and interest rates, has caused quite a stir. Frank Emrich, the association's director, sounds the alarm bell, hinting at potential reductions in housing development without this financial boost.
Emrich highlights the struggling construction sector, which could considerably benefit from this financial aid, coupled with interest subsidies from the federal government. With a focus on municipal and cooperative housing companies in Thuringia, Emrich conveys his fears that the medium-sized regional construction sector teeters on the edge of collapse.
Gazing into the crystal ball, only about two-thirds of the 2024 new build plans might realistically materialize, potentially dipping to 44% by 2025. Not to mention, one-third of planned modernization projects could witness a quality drop. Hence, the housing sector urgently yearns for investment certainty through clearer, easier-to-understand rules, as per Emrich's concerns.
Inserting government funding into housing-related initiatives offers various ways to tackle these hurdles:
- Green Financing: Investments from the European Investment Bank promote projects focused on energy efficiency, renewables, and eco-friendly construction. In Thuringia, for instance, the EIB Group contributed €400 million to modernize and digitize the electricity grid, exponentially increasing local solar and wind energy generation.
- Affordable Housing: Grants from government initiatives can create affordable housing opportunities and ecological settlements, with initiatives like Bremen's sustainable housing project showcasing cost-effective and environmentally friendly construction methods using prefabricated modules.
- Innovation: Public funding fosters the utilization of sustainable materials and technologies in construction, such as timber frame construction and renewable energy integration, like the Bremen solar power-integrated housing estate demonstrating eco-friendly construction techniques.
- Community Development: Integrated living and working communities remain vital for supporting individuals with cognitive impairments, as witnessed by Thuringia's SOS Village Community Grimmen-Hohenwieden.
- Grid Modernization: Government loans, like TEAG's €400 million extract, can boost and digitalize the electricity grid, improving energy security and enabling the integration of more renewables.
Government backing provides the Thuringian housing industry with a potent weapon against climbing costs and interest rates while fostering affordable and sustainable living spaces—all culminating in the pursuit of climate neutrality goals.
