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Market analysis··3 min read

Housing construction crisis: The necessity of a holistic solution beyond mere acceleration

The 6th Construction Industry Day in Buxtehude highlighted the challenges in housing construction and discussed whether political initiatives such as the “Bau-Turbo” are sufficient to significantly accelerate the creation of urgently needed housing.

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Housing construction crisis: The necessity of a holistic solution beyond mere acceleration. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

Süderelbe AG and hochschule 21 organised the 6th Construction Industry Day in Buxtehude, bringing together representatives from politics, the housing industry, the real estate sector, and construction practice. The central theme of the event was the extent to which political initiatives to accelerate housing construction, particularly the announced “Bau-Turbo” (Construction Turbo), are sufficient to address current challenges. In his welcome address, Grant Hendrik Tonne, Lower Saxony's Minister for Economic Affairs, Transport and Construction, emphasised that the creation of housing is one of the most pressing tasks for the economy, municipalities, and society.

Professor Dr. Thomas Beyerle from Hochschule Biberach subjected the expectations for the “Bau-Turbo” to a critical analysis. Citing current market data, he pointed out that housing markets are characterised by a significant surplus of demand, a decline in completions, and ongoing economic uncertainties. While he assessed the planned approval fiction as a potential “game changer,” he also warned against excessive expectations. State-level regulations, staff shortages in authorities, and lengthy complaint and participation procedures could limit the intended acceleration effects. Beyerle also advocated for greater utilisation of the potential within existing buildings and for understanding renovation as an essential lever for creating and securing housing.

State Secretary Dr. Olaf Joachim from the Federal Ministry for Housing, Urban Development and Building presented the elements of the “Bau-Turbo,” which are intended to enable a significant acceleration of planning and approval procedures through simplified processes and the reduction of bureaucratic hurdles. He emphasised that while the federal government can create the legal framework, the actual effectiveness of these measures largely depends on their concrete implementation in the states and municipalities.

Andreas Breitner, Director of the Association of North German Housing Companies (VNW), stressed that the availability of affordable housing cannot be ensured solely through political targets. He called for reliable framework conditions and economic prospects for housing companies to stimulate investment. Another decisive factor, he added, was the reduction of construction costs. Breitner referred to initiatives like the “Hamburg Standard,” which, through targeted simplifications in construction and building technology, such as reducing ceiling thickness from 20 cm to 16 cm, realises savings potential of up to EUR 600 gross per square metre of living space.

From the perspective of the construction industry, Dipl.-Ing. Sönke Pickenpack, Chairman of the Working Group on Building in Existing Structures within the Construction Industry Association of Lower Saxony-Bremen, explained the necessity of consistent implementation of political impulses into effective measures. The industry has already made significant progress through modular and serial construction methods, digital planning approaches, and new ways of dealing with existing properties. The main obstacles, therefore, are not primarily on the construction site, but in the lengthy planning and approval processes. Several years often pass between initial planning and the start of construction, which creates uncertainty and complicates investment decisions. More reliable and predictable procedures are crucial to trigger investment and efficiently utilise the capacities of the construction industry.

Dr.-Ing. Olaf Drude from WK Consult, a practical partner of hochschule 21 and a shareholder of Süderelbe AG, highlighted the potential of digitalisation. Using concrete examples, he demonstrated how digital procedures can accelerate and make more efficient the maintenance and renovation of engineering structures.

In the concluding panel discussion, it became clear that solutions to the known challenges in housing construction are available. The competition of ideas within federalism was emphasised, but it was criticised that this did not apply to building regulations. Economic efficiency requires realistic and nationally valid building requirements, as well as a balanced assessment of climate protection and economic viability. Climate protection should be pursued intelligently to gain acceptance, with a focus on rethinking existing stock, not primarily new builds.

Dr. Olaf Krüger, CEO of Süderelbe AG, and Professor Dr. Ingo Hadrych, President of hochschule 21, summarised that stakeholders are seeking solutions, and that fast processes and planning certainty for investors, municipalities, and companies are indispensable. Only through the joint action of all parties involved can sufficient new housing be created. The event, with approximately 130 participants, underscored the great interest in concrete solutions for the future of construction, as the creation of housing not only ensures the attractiveness of cities but also promotes jobs and regional value creation.

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