Federal government gives Saxony a lot of money for social housing

Saxony will receive 174.4 million euros from the federal government this year for social housing and the construction of residential homes. The allocation of funds is based on an administrative agreement between the federal and state governments. 149.5 million euros will be allocated to social housing construction and 24.9 million euros to the "Young Housing" program, which will be used to build halls of residence for trainees and students.

Saxony wants to "step up a gear" in social housing construction

According to Infrastructure Minister Regina Kraushaar (CDU), Saxony wants to focus on continuity in social housing construction. As the federal government has increased its funding for this program this year, Saxony could also "go one better". However, the Saxon state parliament must follow the government's proposals. The double budget for 2025/2026 is due to be passed in June.

Kraushaar spoke of good news for the construction industry, for investors and for future tenants. "We have clearly prioritized social housing construction in the budget because it is not the regulatory, but the investment path that will sustainably ease the housing market. By setting this priority, we can take almost all of the funds from the federal government."

The minister emphasized that these funds could be used to create additional social housing - either by building new apartments or by modernizing existing apartments with subsequent rent and occupancy commitments.

The Saxon funding guideline for tied rental housing supports the construction of new social housing in municipalities with a tight housing market. This year, these municipalities include the two cities of Leipzig and Dresden as well as the municipality of Großpösna. In addition, the modernization of existing housing can be supported throughout Saxony with the guideline for affordable rental housing.