Week in review: What Mercedes-Benz has to do with the housing crisis

This week, the CDU Economic Council in Hesse invited to Mercedes-Benz in Frankfurt. The general meeting was followed by the annual reception with Minister President Boris Rhein as the keynote speaker.

As the voice of the social market economy, the CDU Economic Council advocates personal responsibility, entrepreneurial freedom, and investment security.

With values such as engineering excellence, precision, and quality, Mercedes-Benz embodies the German economy. The German pursuit of perfection has long since revealed its downside in the construction industry. The creation of urgently needed new housing is becoming increasingly uneconomical.

The new “construction turbo” aims to accelerate the process. But as long as the structural brakes remain in place, no momentum will be generated.

My top 3 ways to achieve real progress in housing construction:

More building land

Only more land will reduce land prices in the long term. The “construction turbo” is essentially a “building land turbo.” It allows local authorities to release building land more quickly. Now they really need to fire up the turbo.

Less regulation

German perfectionism in construction comes at a price. Excessive standards, requirements, and energy regulations drive up construction costs. Standardization of state-building rules is long overdue.

Tax relief

Germany is a high-tax country. Real estate transfer tax burdens buyers, investors, and developers alike. Reducing this tax would significantly stimulate the real estate market, mobilize capital, and make home ownership possible again.

Ronny Kazyska