Beacon of Hope in Housing - Bavaria’s housing revival shifts focus to rural towns and smaller cities
Bavaria's housing construction scene is witnessing a significant shift. While the southern half of Upper Bavaria and Swabia continues to see sharp declines, the state as a whole shows signs of recovery with a 13% increase in residential building permits from January to September.
The focus of growth activities is shifting towards rural areas and smaller towns. This trend is driven by the economic potential of these regions, the demand for affordable living spaces, and the desire to balance urbanity with rural idyll. Multi-family housing permits have also risen by 12% across Bavaria, indicating a shift in focus.
Bavarian Housing Minister Christian Bernreiter welcomes this turnaround. He notes that rural areas and smaller towns are more likely to see a revival in construction due to less severe housing shortages. The government is committed to streamlining funding regulations to accelerate this progress. However, the housing shortage remains severe in Bavarian major cities, with a 3.6% decrease in building permits.
Middle Franconia led the way with a 63.1% increase in building permits, followed by Lower Bavaria and Upper Franconia. To boost construction, Bavaria plans to increase housing subsidies by an additional billion euros. The Bavarian Housing Association director Hans Maier calls for stable funding to ensure affordable rental housing.
Despite the challenges in major cities, Bavaria's housing construction is showing signs of recovery, with a focus on rural areas and smaller towns. With increased funding and streamlined regulations, the state aims to address the housing shortage and provide affordable living spaces.
