Saxon housing cooperatives continue to feel thwarted by high costs when it comes to new construction. According to preliminary figures, only 190 new apartments were built last year, compared to 286 in 2023. "We want to build new apartments, but we can't," said Mirjam Philipp, head of the association. In addition to the construction costs, this is due to the rise in interest rates in recent years and unpredictable and unhelpful subsidy programs.
"Construction costs of around 4,000 euros per square metre are now due for new builds, which would lead to rents of 15 to 20 euros per square metre without appropriate subsidies," emphasized Philipp: "This is simply too high for our clientele." The vacancy rate is also a concern for the Association of Saxon Housing Cooperatives (VSWG). It stands at 8.4 percent in the entire association area. This corresponds to around 30,000 apartments.
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