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Affordable housing: Associations want funding programs

Affordable housing: Associations want funding programs
Affordable housing: Associations want funding programs. (Symbolic image) / Photo: Jan Woitas/dpa
From: DieSachsen News
Renovation instead of new construction: How prefabricated buildings could become a driver for affordable housing and climate protection - and what politicians need to change now.

The Central German associations of the socially oriented housing industry are calling for realistic political framework conditions, reliable funding programs and practicable requirements for climate protection. Otherwise, investments in Saxony, Saxony-Anhalt and Thuringia could fail to materialize - with serious consequences for affordable housing, social stability and the achievement of climate targets, they said in a joint statement.

In many places, the necessary funding framework is lacking, and in Saxony-Anhalt there are currently no active housing promotion programs available at all, said Jens Zillmann, Association Director of the Saxony-Anhalt Housing Industry Association. "If we want to secure affordable housing, we now need a viable, reliable funding program for the refurbishment of existing housing stock in the housing industry."

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No new construction without funding

New construction is increasingly coming to a standstill due to massively increased construction costs, high requirements and a lack of economic prospects, explained Mirjam Philipp, CEO of the Association of Saxon Housing Cooperatives.

The associations are therefore calling for a fundamental change of course towards simpler, faster and affordable solutions. According to the data, not a single social housing unit was built in Saxony-Anhalt and Thuringia in 2024, compared to 2,680 in Saxony due to certain subsidies.

Serial refurbishment as an opportunity

The associations see the key task as being the refurbishment of existing housing stock. The numerous prefabricated buildings in particular offer the opportunity to develop climate-friendly solutions on an industrial scale and implement them on a large scale, said Alexander Müller, Association Director of the Association of the Housing and Real Estate Industry in Saxony. "If we use this lever, a challenge will become a real industrial policy breakthrough for affordable housing."

Taken together, the three associations have around 1.15 million apartments and provide homes for around two million people in Saxony, Saxony-Anhalt and Thuringia. According to the data, rents have risen by 0.65 euros over the past five years to currently 5.75 euros per square meter. This increase is well below the general consumer price trend.

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