New construction becomes a risk for housing cooperatives

The construction of new apartments is increasingly becoming a risk for housing cooperatives in Saxony in view of the cost trend. A total of 282 apartments were built last year, explained Mirjam Philipp, CEO of the Association of Saxon Housing Cooperatives, at the presentation of the preliminary figures. Ten years ago, there were still more than 500. This year, only 110 apartments are expected to be built.

Focus on the development of the housing stock

Philipp considers a figure of between 300 and 500 residential units per year to be desirable for new construction - as was the case in the past. This is also not a contradiction to the vacancy rate, another problem for cooperatives. Ultimately, the aim is to expand the portfolio. At current construction prices, prices per square meter would have to be between 15 and 20 euros, depending on the standard. Construction costs are currently between 3,500 and 5,000 euros. The focus is therefore on portfolio development.

A good 30,000 cooperative apartments are vacant

The cooperatives expect vacancy rates to increase slightly to 8.5 percent this year (2025: 8.3 percent). However, there are significant regional differences here. In 2024, the vacancy rate in the major cities of Dresden and Leipzig was below three percent, in Chemnitz it was six percent. By contrast, the figure was 16.4 percent in the district of Zwickau, 14.6 percent in the Erzgebirgskreis and 14.1 percent in the district of Meißen. One in eight housing cooperatives has a vacancy rate of at least 20 percent. A good 30,000 apartments are currently vacant in cooperatives.

"2025 was a year of stabilization, but not a year of growth," Philipp concluded. The most important thing for cooperatives is cost stability. Construction costs and operating costs are the "two big Bs" in terms of cost increases. Tenants would have to expect higher additional payments for operating costs. Other cost drivers are the higher minimum wage and increased construction and tradesmen's costs. The cooperatives are concerned with economic stability without social hardship.

Average rent for cooperatives: EUR 5.62 cold

In 2025, the average rent (cold) for a cooperative apartment was EUR 5.62 per square meter (2024: EUR 5.42). An increase of 2 to 3.5 percent is expected this year. Rent debts are still not an issue. "Tenants are very disciplined," said Philipp. Last year, rental debts amounted to around nine million euros - 0.6 percent of sales revenue. The cooperatives manage a total of around 294,000 apartments in Bavaria, or 21.4 percent of the entire rental housing stock.

The cooperatives see the "construction turbo" planned by the federal government as a "delicate little plant", but it must now be nurtured, they said. The association is also in favor of "simple construction" without overflowing regulations. A basic standard is needed for construction as the "new normal". Lowered and affordable standards should be the benchmark and deviations upwards should still be possible. "You don't need footfall sound insulation on the balcony," said Philipp, adding that 15 sockets in a room are also not necessary. The savings potential is up to 600 euros per square meter.