Hesse: High construction and energy costs endanger affordable housing

Frankfurt/Main (dpa/lhe) - According to the Association of the Southwest German Housing Industry, the sharp rise in construction and energy costs is jeopardizing the creation of affordable housing.

Hesse: High construction and energy costs endanger affordable housing

Frankfurt/Main (dpa/lhe) - According to the Association of the Southwest German Housing Industry, the sharp rise in construction and energy costs is jeopardizing the creation of affordable housing. In the past few years, construction prices have risen much more than consumer prices as a whole, said association board member Axel Thousand Pounds on Wednesday. "The construction costs have been getting out of hand for years." The member companies have increased their investments in new buildings and existing buildings to 1.52 billion euros (as of 2021). Nevertheless, construction completions fell to 1,489 last year - 500 fewer than in the previous year.

The socially oriented housing industry does not want to pass the price increases on to rents if possible. Currently, the average net cold rent of the member companies in the portfolio of 7 euros per square meter (as of 2021) is well below the comparable value in Hesse. This amounts to 7.60 euros, but was last determined in 2018 and is therefore probably higher.

The skyrocketing cost of gas also exacerbated the situation. According to a survey, the member companies expect the costs for the gas supply to almost triple, the association explained. He represents around 200 private and public companies in the housing industry in Hesse and southern Rhineland-Palatinate with around 400,000 apartments.

When it comes to social housing, politicians must do their part, a thousand pounds demanded. Reliable and good support programs are indispensable. There had been repeated trouble because the KfW Bank stopped programs to promote energy-efficient buildings.

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