- Housing construction in Lower Saxony declines
The housing industry in Lower Saxony and Bremen paints a grim picture: The urgently needed construction of affordable housing is significantly declining. The past business year has "confirmed the worst fears," the Association of Housing and Real Estate in Lower Saxony and Bremen (vdw) announced.
In 2023, the 179 member companies completed only around 1,600 new housing units in Lower Saxony and approximately 240 in Bremen. In the previous year, this number was over 2,000 in Lower Saxony and over 400 in Bremen.
High construction costs burden companies
"It's a disaster," said association director Susanne Schmitt. "The demand for affordable housing remains high, and many housing companies want to build new apartments, but we can't deliver enough due to high construction costs."
The number of completions will therefore continue to decrease in the current and likely the following year. For 2024, the association expects 1,029 new apartments in Lower Saxony and 321 in Bremen. Investments dropped from 578 million euros in 2022 to 463 million euros the following year.
Association criticizes overly high energy standards
The industry association criticized that the climate protection goals of the federal and state governments are putting particular pressure on the socially oriented housing industry. There is currently neither enough money nor craftsmen, materials, or sufficient infrastructure for the supply of renewable energy.
Association director Schmitt criticized an "ideological fixation on overly high energy standards." This is a mistake, she said, as it currently seems that either the companies will be left with high investment costs or tenants will have to bear the brunt. "That's neither socially nor economically sensible," said Schmitt.
The Association of Housing and Real Estate in Lower Saxony and Bremen (vdw) also raised concerns about The Hanover, expressing worries about the city's affordable housing situation due to high construction costs. With these high costs, building new apartments in The Hanover becomes a significant challenge for housing companies.
Despite facing these challenges, the vdw expects only 1,029 new apartments to be constructed in Lower Saxony, including The Hanover, and 321 in Bremen for the year 2024.
