In the view of IG BAU and the Tenants’ Association, the acute housing shortage requires a billion-euro package from the federal government. This is to be financed by tougher action against tax evasion.
The IG BAU trade union and the tenants’ association have proposed an economic stimulus package worth 20 billion euros annually for the rapid construction of urgently needed housing in Germany. “A large-scale housing construction offensive is urgently needed in order to finally effectively combat the dramatic housing shortage and at the same time to stimulate the ailing economy,” said IG BAU Federal Chairman Robert Feiger.
The two organizations are therefore calling for a “housing stimulus package” that would focus primarily on social housing and affordable housing.
Just to build around 100,000 social housing units per year would require around 13 billion euros, of which the federal government would have to invest ten billion euros. This is the result of calculations carried out by the Pestel Institute on behalf of the Tenants’ Association and IG BAU.
A further 3.5 billion euros per year are needed for the construction of condominiums and for the construction of 40,000 new affordable apartments each year.
“Germany needs a ‘housing economic stimulus package’. And not just in the parties’ election manifestos for the next federal election, but now,” explained Tenants’ Association President Lukas Siebenkotten.
According to the investigation, the funds could be offset by tougher action against tax evasion. According to the Federal Audit Office, this costs the federal government between 30 and 50 billion euros annually.
Source: Stern
