Additional money for social housing foreseeable

Saxony could benefit from additional federal funding for social housing. In the coming year, this would be just under 25 million euros, the Ministry of Infrastructure announced in its response to a minor question from Left Party politician Juliane Nagel. However, the Bundestag would have to approve the plans adopted by the Federal Cabinet and the distribution would still have to be based on the Königstein key. In relation to this year, the additional sum could be just under 75 million euros in 2027 and a good 99 million euros in the following two years.

In 2025, Saxony will receive 149.5 million euros from the federal government for this purpose, with the Free State's share amounting to just under 50 million euros.

Linke considers more money for social housing construction to be overdue

"More money for social housing construction is overdue. The Free State must call up the federal funds by providing sufficient co-financing," explained Nagel. So far, Saxony has only invested as much money as necessary in this area. Other federal states would provide significantly more state funding. "Saxony needs significantly more social housing than is financed with the available funds. Between 2017 and 2024, only 2,141 social housing units were built in our state, but at least 11,095 more are needed."

According to Nagel, the bacon belt of Dresden and Leipzig must also be given more attention when it comes to creating social housing. "People on low and middle incomes are increasingly suffering from the upward rent spiral. Countermeasures are urgently needed."

Federal government wants to increase funding for social housing

At the end of June, the federal cabinet approved the second government draft of the 2025 budget as well as key figures for the 2026 budget and financial planning up to 2029. This also includes an increase in funding for social housing. For 2025, 3.5 billion euros are available for this purpose. For 2026, 4 billion euros are earmarked, for 2027 a further 5 billion euros and for 2028 and 2029 5.5 billion euros each.

It is still unclear to what extent Saxony will have to provide co-financing in order to receive the federal funds. "If the federal states continue to have to provide at least 40 percent of the federal funds used for the additional federal funds, additional state co-financing funds of at least 9,964,160 euros would be required," the Ministry of Infrastructure announced.