Shift in Perspective Needed in Housing Marketing Industry - A review is needed in the marketing strategies for housing development
In Thuringia, the investment in new construction projects for 2024 stands at 48.9 million euros, marking the lowest level in many years. This low investment is attributed to high construction costs, making it challenging to offer socially acceptable rents for apartments.
The Association of Housing Companies, representing 234 companies, including 185 housing companies, which rent around 265,000 apartments in Thuringia, is advocating for increased funding for social housing construction. Frank Emrich, the director of the Association, has called for a reorientation of housing construction promotion.
The housing industry estimates that at least 150 million euros per year is needed to provide sufficient social housing, with an ideal budget of 200 million euros. The association suggests modular construction and reviewing building standards as potential solutions for providing more social housing units.
Examples of modular construction can be found in cities like Erfurt, Jena, Arnstadt, and Nordhausen. The "Hamburg standard" is mentioned as a possible example for reviewing building standards in Thuringia.
The current rules for housing construction promotion in Thuringia are set to expire at the end of 2025. The state could depart from the "gold standard" for funded projects to reduce construction costs.
The association is also concerned about the decreasing number of rent-controlled apartments in Thuringia. Approximately every second tenant in Thuringia lives in a company organized in the Association of Housing Companies. According to Frank Emrich, an average of 800 apartments fall out of rent control each year in Thuringia.
To counter this trend, the association estimates that around 1,000 social housing units need to be built or renovated annually. The association believes that reviewing building standards could be a part of the solution for providing more social housing units.
Regional projects such as HEAT 35, which involve urban and social initiatives, may implicate social services and urban development, but there is no explicit reference to reforms in social housing promotion or strategies to counter the reduction of rent-controlled apartments within these projects.
In Germany, including Thuringia, the decline of rent-controlled apartments is often addressed by increased promotion of social housing through state subsidies, incentives for non-profit housing associations, and legal regulations aimed at preserving affordable housing. The housing industry typically participates by constructing subsidized housing units or entering public-private partnerships.
For the most current and specific proposals and the housing industry's role therein, one should consult official sources from Thuringia’s housing ministry or local government announcements.
The Association of Housing Companies in Thuringia has proposed a need for more funding, ideally 200 million euros per year, to support social housing construction, considering that modular construction and reviewing building standards could provide more units. Notably, community policies regarding housing construction promotion in Thuringia are due for a review, with potential changes to reduce construction costs and realign with the "Hamburg standard." Additionally, there's a growing concern about the decreasing number of rent-controlled apartments, with an average of 800 falling out of control every year, prompting the need for annual construction or renovation of at least 1,000 social housing units.
