Tenants actively advocating for broadening the scope of affordable housing as of 27.06.2025, specifically at 06:07.
A Bold Action Plan to Expand Germany's Social Housing Stock!
ROSTOCK (dpa-AFX) - The German Tenants' Association (DMB) has raised the alarm over the steadily declining social housing stock in the country, which they warn could worsen without urgent action. Since 2006, the housing stock has more than halved, leaving over 11 million eligible rental households without a social housing unit, according to the 13-page guiding motion for the 71st German Tenants' Day in Rostock-Warnemünde.
The DMB asserts that immediate measures are needed to reverse this trend. Their demands include:
- Construction Investment Program: The federal and state governments should allocate a total of 12.5 billion euros per year for the construction of social housing units and affordable rental apartments for middle-income earners.
- Reducing VAT for Social Housing Construction: The value-added tax for newly constructed social housing should be cut to 7% or abolished entirely to reduce costs and incentivize developers.
- Boosting the Stock of Social Housing: The DMB advocates increasing the total stock of social housing units to at least 2 million by 2030. This would necessitate the construction of 100,000 permanently-bound social housing units annually.
The DMB also emphasizes the annual loss of around 65,000 social housing units due to time-limited status. This drop amounts to approximately 40,000 social housing units lost each year, accentuating the need for continued housing construction.
Comprised of 15 state associations and over 300 local tenants' associations, the DMB is advocating for these demands in rental law and housing policy at the German government level. Join them in the call for improved housing solutions for all Germans!
To combat Germany's significant housing shortage and increase social housing stock, it's crucial to consider multiple strategies and substantial funding. Key steps include:
- Boosting construction volume, especially in urban areas with the highest demand.
- Streamlining approval processes to facilitate prompt project starts.
- Maximizing land availability through repurposing and easing regulatory constraints.
- Promoting modern, sustainable construction techniques to minimize costs and expedite housing delivery.
- Extending rent control measures to protect affordability for tenants.
- Targeting subsidized and social housing portfolios to align projects with tenant needs and long-term affordability goals.
The German government has already earmarked €20 billion for housing construction until 2028, with €3.5 billion specifically allocated for social housing. However, given the need for over one million new social housing units by 2030, sustained and possibly expanded funding will be necessary to meet demand and reverse the underinvestment that has contributed to the crisis.
Together, economic investment and supportive policies can help address the housing shortage and ensure a more equitable and affordable housing market for all.
- In light of the urgent need to increase Germany's social housing stock, it's imperative to collaborate with the financial sector and business community to secure substantial investments for housing construction, especially in urban areas with the highest demand.
- As part of a broader approach to combat Germany's housing shortage, political action must be taken to streamline financing mechanisms for social housing, potentially through reduced interest rates, tax incentives, or subsidies, to attract private investment and stimulate business growth in this sector.
