Housing as a key factor: Government plans billions for social construction!

Housing as a key factor: Government plans billions for social construction!

The discussion about affordable housing in Germany is becoming increasingly important. In Baureuth, Markus-Patrick Keil, the GBW board member, expressed interest in the planned Walküre project at the beginning of June 2025, with the price being a decisive factor for implementation. Benny Balogh from GEWOG provided information about the planning of around 180 new apartments on the site, some of which are intended as subsidized housing. Despite this promising development, no one has yet contacted GEWOG to enter into a partnership.

GEWOG is thinking about modular construction methods to enable cheap and quick housing solutions. The focus is not only on the sheer number of apartments, but also on the quality and affordability of the living space. This is particularly important at a time when social housing builders are hoping for political support to secure long-term affordable housing. In this context, an appeal is made to the new federal government: funding commitments for social housing should last up to 50 years in order to encourage investors.

Supportive measures for social housing

In this context, Keil emphasizes that a long period should not deter potential investors, but can provide long-term security for social housing. To get closer to these goals, various proposals are being discussed, including lower VAT rates for construction costs and speeding up approval processes.

The federal government plans to provide a record sum of 21.65 billion euros for social housing by 2028. Loud bmwsb.bund.de The target groups are primarily people with low and middle incomes as well as the modernization of existing living space. The aim of social housing is to provide working people, seniors and families with suitable living space.

Since its introduction in 1950, social housing has been a proven instrument for creating affordable living space. The funding will increase from 2 billion euros in 2022 to 3.5 billion euros annually from 2025 to 2028. These funds will include rental apartments for low-income households as well as student and trainee dormitories.

An exemplary project is “Villa ganZ” in Hanover, which offers rent-controlled living space for single parents and people living alone. Social housing promotes investments in long-term affordable housing and ensures affordable rents. In addition to the financial aspects, urban development funding contributes to improving the quality of life in cities and supporting social housing promotion.

Overall, creating and securing affordable housing is a challenge that politicians and social housing developers must face together. However, the federal government's current plans and local initiatives show that positive change is possible.