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Housing construction in a cost crisis: expert advocates Building Type E as standard

In view of falling completion figures and high construction costs, industry expert Klaus-Peter Stöppler calls for a fundamental reduction in building standards.

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Housing construction in a cost crisis: expert advocates Building Type E as standard. 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.

On 26 and 27 November 2026, architects, urban planners, politicians, as well as representatives from the housing industry and academia, will gather at Kino International in Berlin for the Bauwelt Congress. Under the central theme 'Homesick: Answers to the Housing Question', construction costs, standards, land prices, and new floor plans will take centre stage. Klaus-Peter Stöppler, executive interim manager and advisory board member for the construction and real estate sector, puts the debate into perspective from an execution standpoint. In his assessment, the housing question is primarily decided by standards, official procedures, and the operational management of construction firms. If projects are not economically viable, new construction will not take place, regardless of the developer's legal form.

Statistical trends demonstrate the current strain in the sector. According to the Federal Statistical Office, prices for the construction of new residential buildings in August 2026 were more than five per cent higher than in the same month of the previous year. The ifo Institute expects only around 185,000 completed flats for the full year 2026, while the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) estimates an annual requirement of around 320,000 units up to 2030. Furthermore, in September 2026, around 14 per cent of housing construction companies recorded cancelled orders.

Cost reduction through legal reforms and Building Type E

As an effective lever, Stöppler calls for an amendment to construction contract law. At present, liability for compliance with recognised codes of practice compels parties to satisfy non-binding comfort and fit-out standards as well. To avoid risks, construction is carried out with maximum complexity as a precaution. Pilot projects for Building Type E in Bavaria showcase alternative models: according to surveys by the Bavarian Ministry of Housing, Construction and Transport and the Bavarian Chamber of Civil Engineers, more than ten per cent of costs can be saved in this way. At the Augsburg-Haunstetten project site, building construction costs were even more than 15 per cent lower. Stöppler therefore demands that Building Type E be established as the standard for both new builds and existing properties.

  • —Dispensing with oversized load-bearing structures and building services
  • —Reducing the structural complexity of underground car parks
  • —Pragmatic yet functional standards for sound insulation

In addition to reduced standards, the expert sees potential in prefabrication and standardisation. Serial construction has so far often foundered on conventional habits, lengthy approval procedures, and a lack of standardised large-scale schemes in multi-family housing. Digital methods such as Building Information Modelling (BIM) are also still being adopted too hesitantly by contractors, even though they are indispensable in the medium term to overcome productivity challenges and skilled labour shortages.

Accelerating procedures and unlocking potential in existing stock

To accelerate processes, Stöppler advocates binding processing deadlines, purely digital permits, and the elimination of duplicate reviews between authorities and funding bodies. Approaches such as automatic approval after three months are the right way forward. In addition, the key to creating living space lies in roof extensions, densification, and the conversion of vacant office and commercial space. On the corporate side, the restructuring expert also urges streamlined decision-making paths, clear project objectives, and professional project management in order to prevent undesirable developments on construction sites in the future.

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