Inexpensive housing construction in Baden-Württemberg may lead to impending water shortage
In the bustling city of Stuttgart, the Association of Baden-Württemberg Housing and Real Estate Companies (VBW) has seen a significant drop in apartment completions for 2024. Compared to the previous year, the number of apartment completions decreased by 16%. This decline was more pronounced for single-family houses (-20%) and two-family houses (-29%).
The VBW, under the leadership of Verbandsdirektorin Iris Beuerle, attributes this reduction to the high construction costs and the unfavourable economic framework conditions that are affecting community-oriented housing construction.
In a shift from new construction, VBW member companies are planning to invest more in maintenance than in new builds for the first time in many years. This shift could be due to cost pressures and budget constraints, regulatory or planning challenges, market conditions, or sustainability and climate targets. However, these factors should be treated as plausible explanations rather than confirmed facts, as no authoritative sources or official statements have been found concerning VBW's specific investment plans for 2025.
The VBW is also advocating for improvement in the promotion of social housing market. They propose that funding should be linked to the residents' income and regular checking of income. If a tenant exceeds the income, the rent subsidy will be lost.
Meanwhile, the Gesellschaft für Grund- und Hausbesitz der Stadt Heidelberg, led by Peter Bresinski, practices a model where rent is linked to regular checking of the residents' income.
For further information, Jürgen Schmidt can be contacted at 0711 66601-147 or via email at j.schmidt@our website.
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- The decline in apartment completions in Stuttgart can potentially influence economic and social policy discussions, as it may impact the manufacturing and housing industry.
- To address the decreasing number of construction projects, VBW is advocating for a focus on environmental-science and climate-change strategies in housing construction to improve cost-efficiency.
- As VBW members look to invest more in maintenance rather than new builds, the role of finance in the housing market will become increasingly important, particularly when accounting for cost pressures, regulatory challenges, and sustainability targets.
