Slashing Residential Construction Costs: Verena Hubertz's Revolutionary Ideas
Hubertz advocates for significant cuts in housing expenses
Want a more affordable place to call home? Germany's new Federal Minister of Housing, Verena Hubertz, has some bold plans for you. She's gunning for a massive decrease in residential building expenses, and her sights are set on prefabricated walls and hereditary leaseholds. Thousands of euros could be yours for the saving!
Prefabricate Your Way to a Cheaper Home
Minister Hubertz is aiming high. She wants to cut the costs of constructing new homes by half. "We can certainly aim to cut costs by half," she told "Bild am Sonntag." To achieve this lofty goal, she believes in more serial prefabricated products.
That means, for example, building walls in the comfort of a factory. And the savings? According to Hubertz, you could easily save 30 to 40 percent, bringing the costs down from 5,000 euros per square meter to a more budget-friendly 2,500 to 3,000 euros per square meter. But she's not stopping there. "If we also look at financing costs, we'll have a complete picture," she says.
Slowing Down the Land Price Hike
Land costs are shooting through the roof, but Hubertz isn't backing down. She's got her eyes on hereditary leaseholds, long-term lease agreements that can help spread out theinitial high costs of land acquisition. She's not just pressing a button here - she's looking at the entire life cycle of a building and its cost drivers to ensure sustainable, cost-effective solutions.
The Numbers Game
Hubertz isn't keen on setting hard targets for housing construction just yet. "We didn't write it into the coalition agreement," she said. Last year saw around 250,000 homes completed, and she's keen to improve on that number. "We have to get out of that. I'm glad that building permits are picking up again," she said.
Digging Deeper
To better understand Hubertz's strategies, let's dive a little deeper.
Prefabricated Components
Hubertz is a believer in prefabrication. She wants more houses to be built using serial prefabricated components, such as pre-manufactured walls. This approach can streamline construction processes, reduce labor costs, and increase efficiency, potentially saving 30 to 40 percent on construction costs. The goal is to have a more affordable home without breaking the bank.
Hereditary Leaseholds
To combat rising land costs, Hubertz is exploring the use of hereditary leaseholds. This approach involves long-term lease agreements, where the cost of land is spread out over a longer period. By using leaseholds, Hubertz hopes to make housing more accessible and affordable without sacrificing quality or sustainability.
References: [1] ntv.de, rog/dpa
- Verena Hubertz
- Construction Industry
- Residential Construction
- Verena Hubertz, Germany's new Minister of Housing, advocate for implementing prefabricated walls in residential construction as a means to slash costs by half, with potential savings of 30 to 40 percent per square meter.
- Hubertz aims to mitigate the escalating land costs by investigating the use of hereditary leaseholds, which offer long-term lease agreements that could help spread out the initial high costs of land acquisition, thereby making housing more affordable.
- In her pursuit of cost-effective solutions in the construction industry, Hubertz is also considering how financing can contribute to the total savings, examining the life cycle of a building and its cost drivers for sustainable reductions.
- Despite not setting hard targets for housing construction in the coalition agreement, Hubertz intends to surpass last year's 250,000 completed homes and is pleased to see building permits increasing, signifying renewed growth in the housing market and real-estate sector.
