Zeit's Get Building: Accelerating Housing Construction with a Fresh Legal Push
Drive Faster Construction with New Legal Framework, Suggests Vice-Chancellor - Law Implementation Accelerates Construction of Institutions Faster by Vice Chancellor
Deputy Chancellor and Finance Minister Lars Klingbeil has high hopes for the new legislation set to speed up residential construction, which will be endorsed by the federal cabinet this Wednesday. "With this, we make it possible for more and quicker building to happen," the SPD leader told media outlets, including the New Berlin Editorial Society.
Housing is a pressing social concern, Klingbeil stated regarding the draft by Housing Minister Verena Hubertz (SPD). "In today's world, young people struggle to afford their own home, and for many, finding a rental apartment is already tough."
The previous SPD-led administration had promised 400,000 new apartments in Germany every year but fell short of the mark. Last year, more than 215,000 building permits were issued.
Germany's housing sector is in dire straits, facing escalating construction costs, rising interest rates, and a lack of skilled labor in the construction industry.
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To construct more and faster, some regulations need to be relaxed, Klingbeil added. Hubertz has put together a solid legislative package for this purpose. "As Finance Minister, I support this by significantly increasing investments in apartment construction.
Revving up the building game, municipalities will obtain the chance to streamline approval procedures by deviating from development plans with the so-called "construction turbo." "This enables faster building, densification, or expansion," explains the Ministry of Housing. In addition, rentals will continue to be safeguarded from conversion to ownership.
- Federal Government
- Lars Klingbeil
- Germany
- SPD
- Verena Hubertz
- Berlin
- Leader
This push for speedy construction comes after reports that the number of new building permits plummeted to a 14-year low as early as January 2025, emphasizing the urgency of the housing crisis. With this law, the government aims to resolve these delays by simplifying administrative procedures, consequently fostering an environment conducive to residential construction.
In parallel, the government has also extended rent control measures until the end of 2029 to protect tenants, a move supported by Housing Minister Hubertz, despite concerns among experts that strict rental laws contribute to supply shortages. Along with expediting construction, the government is working on amplifying tenant protections and boosting transparency in rental costs.
In a nutshell, the proposed law by Klingbeil and Hubertz intends to:
- Accelerate the construction approval process by eliminating bureaucratic hurdles.
- Empower municipalities to expedite residential building projects ("construction turbo").
- Address Germany's severe housing deficit by boosting the supply of new apartments.
- Compliment this with continued rent controls and tenant protection enhancements.
This package aims to achieve a balance between increasing housing availability and maintaining tenant protections in Germany's challenging housing market.
- Lars Klingbeil, the Finance Minister of EC countries Germany, believes that a new legislation aimed at speeding up residential construction will help make more and quicker building possible, as it will be endorsed by the federal cabinet this Wednesday.
- The legislation, drafted by Housing Minister Verena Hubertz of the SPD, includes policies to increase funding for apartment construction and relax some regulations to accelerate the building process in Germany, which currently faces escalating construction costs, rising interest rates, and a lack of skilled labor.
- In addition to expediting construction, the government plans to extend rent control measures until the end of 2029 to protect tenants, a move that aims to address Germany's severe housing deficit by boosting the supply of new apartments, while maintaining tenant protections and boosting transparency in rental costs.
