Saxony is providing nearly 200 million euros in funding for social housing construction. Just under a third of this amount is earmarked for the construction of 740 new apartments in Leipzig and Dresden, while the remaining funds are available for the modernization of 1,600 apartments throughout Saxony, according to the State Ministry of Development. Compared to 2025, the total has increased by more than seven million euros. The subsidized apartments may only be rented to individuals or households that hold a housing eligibility certificate.
Funding Set to Grow Significantly
At the end of 2025, there were approximately 14,300 rent- and occupancy-controlled apartments in Saxony’s municipalities—a good 500 more than a year earlier. There are plans to significantly expand funding for social housing construction. The government’s draft budget for the next two years allocates 473.6 million euros—nearly 190 million euros more than the current amount. The majority of the funds will continue to come from the federal government, which has increased its allocations. Saxony’s share is set to grow from 67.2 to 111.8 million euros.
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