Housing construction in crisis: Experts call for rescue measures!

Housing construction in crisis: Experts call for rescue measures!

The Association of Non-Profit Building Associations (GBV) expresses its full approval of the reintroduction of the earmarking of housing subsidies. Association chairman Klaus Baringer emphasizes that this measure is important in order to ensure sustainable funding for residential construction. "Currently, the share of housing subsidies is only 0.5% of the gross domestic product, compared to 1.4% in the 1990s. This illustrates the need for action," says Baringer. In addition, new financing instruments are being examined to ensure long-term loans and stable housing costs, he adds, according to reporting by OTS.

In 2022, despite numerous crises, GBVs completed 16,700 new homes, an increase of 6% compared to the previous year and above the 10-year average. The impressive investment volume of around 5 billion euros underlines its role as a key economic driver. The GBVs are particularly challenged by rising land and construction costs, which have a negative impact on future construction projects, as the report by GBV Current emerges. What is particularly alarming is the 24% decline in building permits compared to the 10-year average.

To renovate their portfolios, the GBVs also converted 4,200 apartments to climate-friendly heating systems in 2022, which represents an increase of 78%. While the organizations are facing major challenges, Baringer would like to emphasize that the rent cap must not hinder the development of new construction and the renovation of residential buildings. “The public sector must take action now to secure affordable housing for the population in the long term,” demands Baringer and points out that future investments in housing construction are at risk.