Germany Plans State-Backed Housing Corporation to Ease Crisis
Federal Housing Minister Verena Hubertz plans to establish a dedicated federal housing development corporation to boost residential construction in Germany, calling it a potential "game-changer" in an interview with Süddeutsche Zeitung. While the Federal Agency for Real Estate Tasks (BImA) primarily serves federal employees, Hubertz argued that broader action is needed. "We need housing for the entire country. That's why we're pushing for a federal housing corporation," she said, describing it as a move that would put Germany's housing sector "on much firmer ground."
The proposal follows a call from Finance Minister Lars Klingbeil (SPD), who urged the federal government in a speech at the Bertelsmann Foundation on Wednesday to enable large-scale public housing construction. He suggested creating a state-owned housing developer—but Hubertz clarified last Thursday at Berlin's Housing Construction Day that such a step would require amending the constitution.
Discussions are now underway about the broader reforms Germany needs, Hubertz noted, emphasizing that changes must go beyond just the housing corporation. "This will have to be part of a larger package," she said, with talks expected to continue over the summer.
Reflecting on the SPD's devastating losses in recent state elections in Baden-Württemberg and Rhineland-Palatinate, Hubertz acknowledged that her party had long been seen as "blocking reform." She stressed the need for swift progress on policy changes while also crafting a long-term "vision for the future." The SPD, she argued, must revive the promise of upward mobility that defined earlier generations: "People should know that if they work hard, they can afford a good life—a home of their own."
