Young politicians are calling for new solutions for housing construction
Tenants and buyers pay the colliery for the MAUE building economy. According to the German Economy Institute for the first time since 2022, the prices for residential properties are increasing again: In the first quarter of 2025, the prices of condominiums were 1.1 percent above the previous year, single and two-family houses even cost 2.9 percent more. The situation on the rental market remains tense unchanged. Compared to the previous year, rents have increased by 4.3 percent nationwide.
Bavaria does not advance during housing construction – this is how rents rise
In Bavaria, rents have gone up almost one percent of the current market report of the Real Estate Association of Germany (IVD) in the past six months and thus slower than in the previous months. A high demand for too little supply is still available. Free apartments are quickly gone, while it becomes more difficult for those seeking apartments. Large apartments in particular that are suitable for families are rare.
The State Statistical Office draws a similar picture: the need remains high, but the number of building permits goes back. In 2023, the minus was 23 percent compared to the previous year, in 2024 it was another twelve percent. The decline is particularly rapid for one and two-family houses. The mixture of rising construction prices, higher interest rates and uncertain economic outlook causes many private houses from the greatest investment decision in their lives.
Threatening situation for municipal housing in Bavaria
In this situation, the state -funded construction of apartments for construction companies becomes a life anchor. This leads to a run on the state programs. The Free State of Bavaria already has already No more money to promote new projects this year. Municipal housing associations and investors who want to create affordable apartments, would be slowly slowed downcomplains the deputy chair of the Bavarian City Day, the Mayor Thomas Jung (SPD). This creates « massive economic damage ». Jung: « The situation is threatening for municipal and social housing. »
In addition, the new state housing association Bayernheim also accesses the funding pots. Jung demands that. The 1.1 billion euros, which the Free State provides for housing a year, are simply not enough in the current situation. According to a state parliament request from the Greens, almost 15 percent of the funding commitments went to Bayernheim projects and less than 30 percent to municipal companies. The Greens also criticize: « A clear plus of apartments is not available, it is a repression competition in which the state applicant – the Bayernheim – displaces private applicants. »
Free state no longer has money for subsidized apartments – now also participate in citizens?
The situation now also leads to disputes in the Bavarian government coalition, where representatives of the free voters Minister Christian Bernreiter (CSU) targeted take. You have asked Bernreiter to confess color and clearly say when funding money can be expected again. « It is of no use to stand in front of the queue like the rabbit, » says Martin Behringer’s housing policy spokesman for the FW in the state parliament.
The young group of the CSU parliamentary group campaigns for further financing options. Their spokesman Maximilian Böltl pleads for a Free State fund, which should invest in a targeted manner in housing construction and in which citizens can also participate with small amounts. The previous state financing alone is not enough in view of the needs, Böltl told our editorial team: « We have to come up with something new. »
