The reform package by CDU and SPD for the housing market contains two core points: a strong commitment to affordable new construction and blocking the socialization of private housing corporations discussed in Berlin. The coalition leaders have decided to promote social housing with a state-owned housing company and enable serial construction.
State Financing Advantages for Private Construction Companies
To reduce construction costs and secure investments, the federal government wants to support private construction companies with state financing advantages. The planned housing company is to provide cheap loans and guarantees so that more affordable housing is built. At the same time, the federal government plans a legislative initiative to block Berlin’s socialization plans – a signal to private investors that expropriations are not imminent.
Housing Construction as an Existential Issue
That housing construction played such a prominent role in the coalition committee was not a given, as the debate previously revolved mainly around taxes and pensions. But CDU and SPD have understood that there is another existentially important issue. The measures show the right understanding of what the state should do – and where it is better to stay out.
Source: www.zeit.de
