A Fresh Perspective: Making Housing Affordable with Verena Hubertz's Building Plans
Decreased construction expenses imminent
In the spirit of making housing more affordable, Germany's new Federal Minister for Housing, Verena Hubertz, is gunning for a 50% reduction in costs for constructing new residential buildings. In an exclusive interview with "Bild am Sonntag," she detailed plans to achieve this through serial prefabrication and hereditary building rights, potentially saving thousands of euros per square meter.
Small Talk 🗣️ "Bild am Sonntag" Interview: Verena Hubertz, Germany's Federal Minister for Housing
Verena Hubertz, an SPD politician, aims to make building more affordable by embracing prefabricated walls. "It's not just a big savings opportunity — we can easily save 30 to 40 percent," she declared. Instead of the usual 5,000 euros per square meter in building costs, the new estimate could drop to 2,500 to 3,000 euros per square meter.
Serious Savings in Serial Prefabrication
Prefabricated walls produced in a factory can save construction costs significantly. Hubertz is bullish on the potential savings, believing there's more to be tapped by looking at financing costs as well.
Keeping Land Costs in Check
Hubertz also intends to curb the rise in land costs — a major contributor to overall costs — by addressing hereditary building rights. The goal is to have a comprehensive understanding of all cost drivers in the lifecycle of a building to ensure affordability and streamlined construction.
No Firm Targets for Housing Construction
Contrary to some expectations, Hubertz did not indicate a commitment to the 400,000 new apartments per year target that previously existed in the coalition agreement, stating it would be unwise to set such a target in stone in a rapidly changing world.
While the number of around 250,000 apartments completed last year fell short of expectations, Hubertz expressed optimism about the increase in building permits.
- Verena Hubertz
- Construction Industry
- Housing Market
Behind the Scenes:
The Federal Minister for Housing's bold plans to cut costs in residential building construction through prefabricated walls and hereditary building rights could revolutionize the construction industry and bring welcome affordability to the housing market in Germany.
Construction Industry Impact:
- Efficiency: Prefabricated walls may streamline construction and lower labor costs by reducing on-site assembly time.
- Cost Reduction: Manufacturing prefabricated components in controlled environments can lead to reduced material waste, saving money.
- Stability: Hereditary building rights can provide long-term predictability for contractors and developers, potentially spurring investment in the sector.
Housing Market Impact:
- Affordability: Cost savings can be passed on to consumers, making housing more affordable.
- Increased Supply: Faster, cost-effective building methods can help increase the supply of new housing units, meeting high demand and stabilizing prices and rents.
- Market Stabilization: The combination of increased supply and extended rent controls (until 2029) could help prevent sharp rent increases and create a more stable rental market for residents.
The success of these initiatives hinges on their effective implementation and ability to address underlying challenges in the housing and construction sectors. On the horizon, a more affordable and sustainable housing market in Germany may be within reach.
The Federal Minister for Housing, Verena Hubertz, is implementing policies to revolutionize the construction industry by reducing costs in residential building construction through prefabricated walls and addressing hereditary building rights. This could lead to significant cost savings for the industry, potentially saving thousands of euros per square meter, and increase affordability in the housing market. The potential impact includes efficiency in construction, reduced costs, and stability for contractors and developers, as well as affordability, increased supply, and market stabilization for housing consumers. However, the success of these initiatives depends heavily on their effective implementation.
