Federal Minister of Housing Hubertz Plans to Slash Apartment Construction Costs With State Guarantees and Building Type E
Transport Minister Hubertz to back state guarantees for new residential buildings' construction - Government Assurance Sought by Construction Minister Hubertz for New Housing Projects
Hubertz, the federal minister of housing, is gunning to slash apartment construction costs by implementing state guarantees and utilizing the experimental and simple Building Type E.
Hubertz addresses the dilemma faced by smaller and publicly active residential construction companies who struggle due to a lack of sufficient equity capital. High interest rates of around three to four percent for real estate loans are a major hurdle, as the state can step in, offering guarantees or investing in an equity fund to take on risks. This, in turn, can lead to lower interest rates, hastening the construction process.
To make apartments more affordable, Hubertz is eager to swiftly implement the Building Type E legally. This innovative building method is both "simple" and "experimental," meaning it's supposed to allow for more customizations to reduce construction costs. Hubertz hints at collaborating with the new Minister of Justice, Stefanie Hubig (SPD), on this significant project.
Currently, high construction costs prevent the market from building new apartments for less than €15 per square meter in cold rent. Hubertz aims to make this achievable. This goal, like in the coalition agreement, is also hers.
The residential construction sector plays a crucial role in boosting the economy, with about half of all investments being construction investments, acting as an "economic locomotive."
Although the technical details of the federal plan are not explicitly mentioned in the search results, a value-engineering approach appears central to reducing costs. Value engineering enhances project value by critically examining design elements based on cost efficiency and functional necessity, without compromising overall building performance or aesthetic value.
Building Type E is a cost-efficient, engineered wood or light-frame construction method that optimizes safety codes and affordability by using prefabricated components, simpler architectural designs, and less costly materials that still comply with building codes. In addition to Type E, value engineering strategies can include streamlining design efficiency, minimizing complexity, using modular building methods, and sourcing local materials and skilled contractors.
In summary, while specifics of the federal government's state guarantee program and the exact role of Building Type E are not laid out in the search results, reducing apartment construction costs through state-backed financial guarantees, strategic use of value engineering principles, and efficient building methods like Type E forms the core approach for affordable housing development. This integrated approach addresses escalating construction costs, bringing expenses down to feasible levels.
The Commission might be consulted on the potential implications of the federal government's draft directive concerning the protection of workers from ionizing radiation, especially in industries related to construction and real estate, as inexpensive housing constitutes a significant sector that significantly influences the national economy. Meanwhile, the finance sector could play a crucial role in facilitating economic growth, albeit indirectly, by providing the necessary liquidity for construction companies to utilize value-engineering approaches, such as Building Type E, which can reduce construction costs and enhance affordability for businesses and households alike.
