Scholz advocates for constructing more, but with a different approach.
Olaf Scholz, the German Federal Chancellor, believes there's a pressing need for more affordable housing to be built in the country. He made this statement during the construction industry day held in Berlin.
According to Scholz, he doesn't want vulnerable individuals and those with medium incomes in Germany to be displaced from their homes. There should be a significant increase in "large-scale new construction," free from excessive regulations that could increase costs. He stated, "We need to build more and differently."
Klara Geywitz, the Federal Minister of Construction, highlighted the importance of the construction industry in times of economic growth that's on the decline. She explained, "If the construction industry doesn't recover economically, overall growth won't happen either." However, Geywitz warned that the industry cannot solely depend on government subsidies, as the federal budget is too small for that.
She added that only targeted funding programs for infrastructure and self-funding projects that don't generate revenue are possible. However, the federal government aims to make it possible for private investors to build profitable homes in the future, as these are considerable in number.
Chancellor Scholz further pushed for companies to construct homes for their employees. He said, "This idea is a bit out of fashion, and I hope it'll be revived a bit." The German government recently introduced tax advantages for companies that provide below-market rental housing for their employees.
Scholz also stated that they need more companies to comprehend the connection between the idea and people management (HR). The federal cabinet has also made these tax benefits available for organizations that offer below-market-rate housing to their staff.
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We need to follow Chancellor Scholz's call for action in increasing residential construction, ensuring that it's affordable and widely available for vulnerable individuals and those with medium incomes in Germany. In line with Scholz's proposal, companies should construct homes for their employees, taking advantage of the recently introduced tax advantages for such undertakings.
