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Associations call for more support for housing

In the future battery factory of the company Northvolt, around 3000 jobs are expected to be created. However, for the workers and the already established residents, new apartments also need to be built.

The housing sector demands more support for affordable housing in the Dithmarschen district.
The housing sector demands more support for affordable housing in the Dithmarschen district.

- Associations call for more support for housing

Regarding the construction of the battery factory by the Swedish company Northvolt, housing associations demand that the Dithmarschen region not be left behind in the construction of affordable housing. According to the Federal Association of German Housing and Real Estate Companies (GdW) and the Association of North German Housing Companies (VNW), the federal government must support the local municipalities pragmatically and financially.

"A major industrial settlement in the past 50 years in Northern Germany will have significant housing-related consequences, and we have not yet seen that the political decision-makers in Kiel, Berlin, or Brussels understand the magnitude of the challenge," said Axel Gedaschko, President of the GdW, and Andreas Breitner, Director of the VNW.

Building a factory in two years is possible, Breitner emphasized. However, this is not the case with apartments: "A two-year, rather three-year lead time is needed for them to be ready for occupancy. If the groundbreaking for residential buildings only occurs at the time of operation, it will be too late," explained the VNW's direction.

Association head: Only new construction helps

Breitner expressed concern that in the future, people with medium and low incomes will no longer find affordable housing and will instead be displaced by well-paid employees from the battery factory. "Only sufficient new construction will help," he said. Despite tight budgets, the state must introduce short-term special funding for the construction of affordable housing in the Dithmarschen district.

The company Northvolt plans to build battery cells for up to one million electric cars per year in Heide. The start of construction for the 4.5 billion euro project was given in late March by, among others, Chancellor Olaf Scholz (SPD) and Federal Minister of Economics Robert Habeck (Greens). The factory is expected to create 3,000 jobs. The federal government and the state are funding the battery factory with around 700 million euros. This could be supplemented by further guarantees of around 202 million euros, which still need to be approved.

"Given the anticipated influx of employees from the battery factory, it's crucial to address the housing situation. Thus, the following shall be added: The federal government should proactively include housing initiatives in its support for the local municipalities."

"Subsequently, to prevent displacement of low-income residents, the following shall be added: The allocation of immediate and substantial funding for affordable housing construction in the Dithmarschen region is imperative."

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