Specialist argues that constructing "turbo" structures does not address the housing predicament

In recent years, Germany has faced a significant housing shortage, particularly in major cities like Berlin, Hamburg, and Munich. Estimates suggest a nationwide shortage of between half a million to one million apartments. This shortage has been identified as one of the greatest social challenges in the country.

Klaus-Peter Stöppler, a construction and real estate expert and one of the authors of the widely-noticed "Economic Report 2025," has weighed in on the issue. He believes that the shortage of affordable housing remains a pressing concern.

The federal government has proposed a plan called the 'Construction Booster' to reduce the approval process for building permits from five years to two months. Klaus-Peter Stöppler welcomes this initiative but states that it will not solve the housing crisis in Germany. He believes that comprehensive deregulation and bureaucratic simplification at the state and local level are necessary for the 'Construction Booster' to be effective.

One proposed solution to reduce construction costs and halve construction times is the promotion of serial and modular construction methods. This could be achieved through state subsidies and standardized building concepts.

Another solution is the allocation of at least 50 percent of available space in urban development areas for price-controlled housing. Municipal land could be specifically reserved for affordable housing.

Vacancy could also be activated through progressive tax incentives and funding programs for the conversion of commercial and office spaces into residential units. The real estate transfer tax exemptions could be adjusted to alleviate the housing shortage.

Average land costs are 760 euros per square meter, while production costs for multi-story apartments vary between 3,300 and 8,300 euros per square meter. Reducing the value-added tax on construction costs from 19 to 7 percent could help reduce production costs.

Approximately 200,000 housing units are expected to be completed by the end of 2025. Building permits for residential construction have increased by around 5% in the first half of 2025 compared to the previous year.

The persons competent to implement these proposed measures to alleviate the housing shortage in Germany include federal and municipal governments, particularly the Federal Ministry for Housing, Urban Development and Building led by the Federal Minister (currently Verena Hubertz), municipal planning authorities who retain planning sovereignty, and organizations such as the Central Real Estate Committee (ZIA) and civil society alliances involved in housing policy and urban planning.

Klaus-Peter Stoppel, a member of the Diplomatic Council with advisory status at the United Nations, is one of only three individuals awarded the title "Top Interim Manager 2025" by the Diplomatic Council Future Academy. His expertise and insights into the housing crisis in Germany will undoubtedly continue to be valuable in finding solutions to this pressing issue.

Specialist argues that constructing "turbo" structures does not address the housing predicament