Unapologetically Ambitious: A Fresh Start for German Housing Construction Under Minister Hubertz
Hubertz opts against constructing a residential property.
The brand new federal administration is gearing up for an exciting period in housing construction, with the newly appointed Federal Minister for Housing, Urban Development, and Building, Verena Hubertz, leading the charge. Her primary objectives: build new, affordable social housing and streamline the housing construction process. Here's an unfiltered look at her plans, challenges, and approach to tackling Germany's severe housing crisis.
Hubertz, a 37-year-old success story, was catapulted into the spotlight after selling her startup, "Kitchen Stories," for a reported 26 million euros. She could have taken a well-earned break, but instead, she stepped up to the challenge, determined to crack the nut that her predecessors couldn't.
The housing landscape in Germany is dire, with nearly four times fewer social housing units today than in the late '80s. With approximately one million social housing units now in existence, it's easy to see why Hubertz's mission is a significant one. During a candid conversation with Markus Lanz on ZDF, she shed light on her ambitious strategy.
Bold, but Not Bound by Numbers
True to her entrepreneurial spirit, Hubertz is firm about one thing: buildings will go up, and she'll be measured by the pace, technology, and degree of tolerance. But she steers clear of pledging specific numbers of new apartments for the foreseeable future. Instead, she advocates focusing on adaptability and responsiveness to the ever-changing housing market.
Streamlining Bureaucracy and Shedding Unnecessary Red Tape
Determined to clear the way for swift action, Hubertz is tackling bureaucracy head-on. Her vision for housing construction involves reducing bureaucracy by 25% across the board and creating affordable housing in new buildings, aiming for monthly rents of as little as €15 per square meter.
To achieve these lofty goals, she's trimmed her ministry's payroll significantly, dialing it back to approximately 2,500 employees, including subordinate authorities, from a previous staff of around 5,000.
Not Without Controversy
The path to affordable housing may not be smooth, however. Commenting on Hubertz's ambitious rent target, economist Matthias Günther of the Pestel Institute questioned its feasibility in major cities like Hamburg, Cologne, and Munich, where land and construction costs are sky-high. He claims that it's only achievable in smaller cities or rural areas, given certain parameters.
Despite skepticism, Hubertz remains unfazed. She's determined to make her mark on the housing market and steer clear of her predecessor's mistakes.
Time will tell whether Hubertz's 'construction turbo' initiative lives up to its promise. In the meantime, expect nothing less than a bold approach to housing construction in Germany.
- Despite concerns from some economists about the feasibility of her rent target in major cities, Federal Minister Hubertz maintains a determination to challenge the status quo in community policy, particularly in terms of streamlining the housing construction process and reducing bureaucracy.
- As the new federal minister, Hubertz's employment policy priorities extend beyond her ministry, as she advocates for a comprehensive solution to Germany's housing crisis, addressing the severe shortage of affordable social housing units through her ambitious strategy and focus on adaptability and technological advancements in the housing market.
