Germany is short an estimated 700,000 homes by conservative counts. In Berlin, the average asking rent doubled between 2012 and 2024. In Munich, a square meter of new construction costs over 8,000 euros.
The federal government promised 400,000 new homes per year. Actually built in 2024: 245,000. The promise is about as reliable as the national digitalization strategy.
The Diagnosis
The housing crisis is not a market failure. It is a policy failure. The market is doing exactly what it is optimized for: maximizing returns. Maximizing returns on housing means: luxury renovation, vacancy as speculation, displacement of low-income earners.
At the same time, a building permit takes an average of 7 months. The property transfer tax runs as high as 6.5%. Building codes are so complex that even developers struggle to fully understand them.
KIfD's Position
- Nationwide digital building-permit process. Maximum processing time: 8 weeks. No exceptions.
- Speculation tax on vacant apartments in tight housing markets.
- Public housing as an infrastructure mission, not a welfare program.
- AI-driven urban planning: optimizing land-use plans based on mobility data, employment centers, and demographic projections.
- Property transfer tax reduced to 0% for first-time buyers.
Housing is a fundamental right. It is enshrined in the Universal Declaration of Human Rights, Article 25. It has been there since 1948. It is time someone implemented it.