Rent increases are also noticeable in the areas surrounding Dresden and Leipzig

The State Must Provide Affordable Housing

According to Nagel, the market is failing to create affordable housing—the state must step in to do so. “We are pleased that the government is meeting our demand and drawing down the additional federal funds for Saxony, as shown in the draft of the 2027/28 two-year budget. However, these funds must be used for construction,” emphasized the MP.

The Left Party Advocates Focusing on Housing Construction Rather Than Social Benefits

According to Nagel, this requires new funding conditions. For example, subsidies must be adjusted to reflect rising construction costs, and longer rent control periods must be established. Her party is primarily focused on creating affordable housing—that is, on property-based subsidies that lower rent levels. 

“Individual-based support—that is, social benefits such as housing allowances or housing costs—is used to finance the profits of real estate corporations. This logic must be broken,” Nagel emphasized. “We want to build a nonprofit housing sector. This is possible if the money that currently has to go toward individual assistance can instead be directed toward property-based subsidies.”