The federal government aims to support the struggling construction industry by providing subsidies totaling two billion euros. According to SPIEGEL, the funds will be directed towards building small and climate-friendly apartments. This initiative seeks to balance affordability with environmental sustainability.
This substantial financial commitment reflects the German government’s recognition of the dual crises in housing affordability and climate change. By investing in eco-friendly housing, the government is addressing the immediate needs of low- and middle-income families while also contributing to long-term environmental goals.
A new program, “climate-friendly new construction in the low-price segment” (KNN), is set to become the third pillar of housing subsidies, complementing existing programs for private home builders and social housing. The KNN program targets the construction and real estate industry.
KNN aims to stabilize the struggling construction industry by incentivizing the building of affordable apartments with reduced greenhouse gas emissions and optimized use of space. The focus is on creating small, climate-friendly, and affordable homes.
The emphasis on smaller living spaces and eco-friendly designs aligns with broader trends in urban planning that prioritize sustainability and efficient land use. This approach could serve as a model for other countries grappling with similar housing and environmental challenges.
To qualify for the subsidy, apartments must meet specific size restrictions based on the number of rooms. For example, a one-room apartment must not exceed 40 square meters; with two rooms, the maximum size must not exceed 55 square meters; while a four-room apartment can be up to 85 square meters. Different limits apply for wheelchair-accessible apartments.
These size restrictions ensure that the subsidies are targeted towards genuinely affordable housing, preventing misuse by developers aiming to build larger, more expensive units.
Buildings under this program cannot use fossil fuels for central heating and must meet the EH 55 efficiency house standard, which consumes a maximum of 55% of the energy of a reference building. The program also requires tracking greenhouse gas emissions throughout the building’s lifecycle.
German Environmental Aid has expressed concerns that the program might allow the construction industry to continue “climate-damaging patterns” due to the life cycle requirements. They advocate for the stricter EH 40 standard. The Tenants’ Association criticized the lack of rental housing restrictions and fixed rent prices.
Construction Minister Klara Geywitz emphasized the need for affordable housing for those earning too much for subsidized apartments but too little for market rents. The budget committee released nearly 3.5 million euros for 2024 and 350 million euros for subsequent years, totaling two billion euros in program funds.
The significant financial commitment indicates strong political will to tackle these issues. However, the success of the program will depend on its implementation and the ability to address criticisms from various stakeholders.
:max_bytes(150000):strip_icc()/GettyImages-976201130-031950ddf887496fb9da13ce9d2dd8e5.jpg?w=350&resize=350,250&ssl=1 "German housing construction plunges, 400,000 annual goal slips away")
