SHERIDAN, WYOMING - Feb. 20, 2025 "The new federal government must act in the first weeks after its formation. Due to the wrong and often ideological course set in recent years, a housing crisis is already looming, which can hardly be prevented!" With this urgent appeal, Dirk Wohltorf, president of the German Real Estate Association IVD, calls for an immediate program for a consistent housing turnaround just days before the federal election on February 23.
"Even if the right measures are taken immediately, the housing market will only stabilize in two to three years. Until then, the worst years with a massive decline in completions are ahead of us in 2025 and 2026 – the inevitable 'valley of tears',"
warns Wohltorf. In the past year, 215,900 apartments were approved, 16.8 percent fewer than in 2023. The number of building permits thus fell for the third year in a row and is at its lowest level since 2010, as the Federal Statistical Office recently announced. The construction of single and two-family houses is particularly affected.
"The new chancellor must make the housing construction crisis a top priority immediately after taking office and invite a housing summit to the Chancellery as early as the summer of 2025."
The IVD is calling for immediate measures for more housing and home ownership:
"Mine Instead of Rent" – Promote Home Ownership Instead of Constantly Amending Tenancy Law!
"Politicians must finally rethink: Instead of unilaterally regulating tenancy law at the expense of landlords, we should enable more tenants to acquire property," demands Wohltorf. According to a representative Forsa survey from January 2025, two-thirds of tenants want their own property, but high taxation makes this step impossible.
"The solution is clear: abolish the real estate transfer tax for owner-occupied residential property – financed by the federal government, which must set a priority in its budget so that the federal states do not suffer any loss of revenue. Ownership is the best tenant protection and the best provision for old age!"
Lower Building Standards – Lower Building Standards Still Guarantee High Living Standards
"The costs of housing construction have literally exploded in recent years – and not because of rising land prices, but because of ever stricter and often excessive building regulations," says Wohltorf. The IVD is therefore calling for an immediate return to practical building standards and the reintroduction of EH55 funding to make new construction profitable again.
Speed Up Construction – No More Wasted Time!
"To accelerate housing construction, the federal government urgently needs to implement the planned 'construction turbo' as part of the still pending amendment to the Building Code. The newly introduced Paragraph 246e of the BauGB stipulates that in areas with a tight housing market, housing projects can also be approved without a separate development plan – provided the municipality agrees. This could significantly shorten procedures and remove bureaucratic hurdles. Without turbo speed, housing construction threatens to come to a standstill," says Wohltorf.
Wohltorf: "Now or Never – The Housing Market Is Heading for Massive Under-Supply!"
"If the federal government does not send a strong signal in the first week, housing construction will collapse for good," warns Wohltorf. "The construction crisis will hit with full force in 2025 and 2026 – and what is missing then cannot be made up for in the short term. Anyone who does not act now risks years of housing shortage with dramatic consequences for tenants, buyers and the entire economy."
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