Housing Crisis Intensifies as German Associations Demand Urgent Reforms

A coalition of tenant and homeowner associations calls for policy changes to address the severe shortage of affordable housing in Germany.

The Deutsche Mieterbund and Haus & Grund have issued a joint paper urging government action to stimulate housing construction before the 2025 elections.
Key proposals include implementing a federal and state interest rate reduction program to make building affordable housing more feasible.
The associations highlight the need for municipalities to release more land for development, as land prices have surged by 83% nationwide since 2012.
Reforms are also sought to close tax loopholes like 'Share Deals,' which allow large investors to avoid paying real estate transfer taxes.
A pilot project in Bonn aims to set a precedent by creating affordable housing for essential workers and low-income residents, with completion expected in 2026.