Housing shortage in Potsdam-Mittelmark: 3,100 units are urgently missing!

Housing shortage in Potsdam-Mittelmark: 3,100 units are urgently missing!

Housing construction is becoming a real challenge in the Potsdam-Mittelmark district. According to a recent study by the Pestel Institute, there is a shortage of around 3,100 apartments. This is particularly alarming because 1,850 of them have been vacant for over a year, making re-letting a real test of patience. Over the next five years, the construction of around 1,220 new apartments must be started every year in order to counteract this situation. However, only 431 building permits were issued in the first half of 2023, which makes the situation appear critical.

Matthias Günther, chief economist at the Pestel Institute, sees the required construction goals as difficult to achieve. At the same time, he is calling for an interest rate program with a maximum of 2 percent for cheap building loans. Such an approach could motivate private developers and investors to take action. Katharina Metzger, President of the Federal Association of German Building Materials Trade, agrees that housing construction must be made a top priority in order to support the economy. Construction companies are fighting bankruptcy while at the same time many construction workers are losing their jobs.

Onerous regulations and rising costs

Why doesn't it work better? The high complexity and cost burden of construction are the focus of criticism. The Pestel Institute is calling for withdrawals and easing of the requirements created over the last ten years in order to relieve the burden on housing construction. Excessive energy-saving requirements have driven prices further up. A nationwide comparison shows a similar picture: According to information from ZDF today Building permits have fallen to their lowest level since 2010. Only around 216,000 apartments were approved in 2023, a decrease of almost 17 percent compared to the previous year.

One reason for this decline is undoubtedly the massive increase in construction costs by almost 70% since 2017. The exorbitant increase in interest rates for construction loans and the war in Ukraine are also cited as factors that are putting a strain on the construction business. The majority of Germans live on rent, and net rents rose by an average of two percent last year. There is no end to the misery in sight; experts expect that only around 230,000 new apartments can be built in 2025.

A call for quick action

The construction associations are vehemently demanding that the new government make housing construction a top priority and initiate emergency programs. It is a time when action is required, and in the hopes of a turnaround in housing construction expressed by the Federal Ministry of Construction, the old housing shortage remains. It is clear that there is still a lot to be done to improve the situation for those affected.

In this respect, it remains to be hoped that quick political action and a removal of bureaucratic hurdles will finally come together so that the many empty rooms no longer have to remain the municipality's biggest point of contention in the future.