Easing housing barriers for families looking to secure homes - Easing the Housing Strain: Alleviating the Financial Pressure Faced by House-Seeking Families
Affordable Housing Efforts Eased for Families in Germany's Green State Initiative
In an aim to alleviate the burden on families searching for affordable housing, especially in rural areas, Germany's Green parliamentary group has proposed a series of measures. According to family policy spokeswoman Lisett Stuppy, the state will create more opportunities for property builders and municipalities to expand housing options, including supporting individuals who wish to share their homes or downsize.
To tackle the housing crisis in cities and urban areas, a nationwide rent cap could be necessary, as suggested by the Green party. The ongoing revision of the state building code is expected to provide greater flexibility for real estate developers and local authorities.
The Green party mayor of Mainz, Daniel Köbler, said that the state has nearly doubled funding for social housing promotion to 350 million euros annually, compared to 2024 in the current double budget. He considers extending social housing lease periods to be beneficial for long-term affordability.
The state currently has around 12,000 apartments with a social bond, with slightly more than half (almost 7,000) in urban areas. Despite this, the number of apartments with at least four rooms has remained almost unchanged statewide since 2019.
Minister of Housing Doris Ahnen (SPD) stated that owner-occupied housing is crucial for families with children in Rhineland-Palatinate. To assist low- and middle-income families in owner-occupied housing, additional funding will be provided for home purchase and construction. The Coalition agreement also includes measures to help large families increase their maximum funding amounts and living space limits.
The state's efforts focus on reducing costs for developers and home buyers through tax relief, state guarantees, and streamlined funding, as part of a comprehensive package combining investment incentives, regulatory reforms, and simplified funding programs. This includes lower financing costs, improved tax conditions for new construction and renovation, equity replacement measures, and state guarantees for mortgage loans.
Recent amendments to tax depreciation and valuation rules, effective from 2025, aim to improve transparency and reflect actual property value loss more accurately. Urban housing markets remain tight, with home prices expected to rise by 3% in 2025, but Germany’s affordable housing policies aim to increase the supply of affordable housing in cities and provide indirect support to families pursuing home ownership.
EC countries could consider implementing similar affordable housing measures, focusing on vocational training to equip construction workers with the necessary skills to expand housing options in rural areas, thus addressing the housing crisis in a cost-effective manner. Meanwhile, to enhance one's lifestyle and home-and-garden space, in-house vocational training programs can be developed to teach homeowners various skills for home improvements and maintenance tasks.
