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DW
a day ago
- Business
- DW
German housing crisis: government plans construction boost – DW – 07/28/2025
Germany has a desperate shortage of affordable housing. The government now plans to take a "crowbar" to construction law to help get more homes built at "turbo" speed. "Building and housing is the social issue of our time," Germany's new Construction and Housing Minister Verena Hubertz told public broadcaster ARD in May when she announced her plan to help ease the shortage of affordable housing. With the cabinet set to present its 2026 budget proposal on July 30, spending on housing is one of the focal points. In a country where it can take longer to get approval for a development project than it does to actually build it, Hubertz said she wanted to give local authorities a "crowbar" to circumvent labyrinthine urban planning laws. That crowbar, labeled "Bau-Turbo" (construction turbo), is a new paragraph (§ 246e) to be inserted into the German Building Code. If the legislation is passed in the fall, municipalities will be able to approve construction, change-of-use and renovation projects that deviate from the provisions of the Building Code if those projects are for the construction of new residential buildings. Planning applications will also be automatically approved after two months unless vetoed by the municipality. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Building regulations vary between each of Germany's 16 states and among municipalities, resulting in an ever-growing patchwork of rules governing everything from the number of electric sockets per room to the shape and color of roofs. The Construction Ministry estimates its legislative amendment, to be passed by the Bundestag in the fall, will save companies, citizens and local authorities around €2.5 billion ($2.9 billion) annually. Tim-Oliver Müller, the managing director of the Federal Association of the German Construction Industry (HDB), said he welcomed the government's plans but warned that housing construction "would not pick up again overnight." "The law alone will not result in a single new apartment, but it will make it easier for local authorities to approve them," Müller told DW. He said a "melange of crises" has hit Germany's construction industry, largely as a result of Russia's full-scale invasion of Ukraine, rising energy prices, the increased cost of materials such as concrete and steel, inflation and a jump in interest rates from below 1% to between 3% and 4%. Müller is convinced that the new changes to the law would not reduce quality standards — for example, those regarding fire safety and structural integrity, which remain in place. The new legislation is "purely a creation of possibilities, for example, with regard to building extensions or changing the designation of land from commercial to residential, something that was not previously possible," Müller explained. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Environmentalists have expressed concern about easing planning regulations because they fear green spaces will be built on as new development projects are waved through with less time for local residents to object. "Only with green spaces can we buffer [heatwaves]. Because these green spaces provide active cooling," Stefan Petzold from the nature conservation association NABU told ARD. Another person concerned about hot air is Matthias Günther, the head of the Pestel Institute, which researches areas like the economy and housing for the public and private sectors. He described the new legislation as "a lot of hot air" that will "not achieve anything in the short term." "Additional paragraphs and sections will be added to the Building Code, creating more bureaucracy. Some things will require the municipality's consent, and, especially when it comes to building, they often have problems getting a majority because there's always someone who doesn't want it," Günther told DW. He says that Germany really needs an economic stimulus package for housing construction starting in the fall, accompanied by a loan program with interest rates fixed at 2% for the next 20 years. "The city would essentially pass on its more favorable credit conditions. It wouldn't cost that much. Everyone I talk to says that if they could get financing at 2% then they would start building again," economist Matthias Günther believes, adding that a similar scheme had already proven successful in Poland. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The desperate lack of housing is one of the main reasons why rents have been exploding in big German cities, says Bernard Faller from the Federal Association for Housing and Urban Development (VHW). More than half Germany's population lives in rented accommodation, the highest share in the European Union. While Germany has some of the strongest tenant protection laws in the world, Faller said those laws serve to protect existing tenants and work against those who want or need to move, particularly young people and large families. "The problem remains the same: there are too few homes to meet demand," he told DW. The construction turbo plans are a "very exciting experiment," according to Faller. "Until we come up with something better, and I can't think of anything better, the key to easing the overheated housing market, to curbing rising rents, is for more affordable housing to be built," he said. According to the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), Germany will need approximately 320,000 new homes every year until 2030. The previous federal government, which lost its majority in the February 2025 election, promised to build 400,000 homes annually. But by 2024, that figure was just 251,900, 14.4% down on the previous year. The new coalition of the center-right bloc of Christian Democrats and Christian Social Union (CDU/CSU) and center-left Social Democrats (SPD) is planning to boost the Construction Ministry's budget for 2025 to €7.4 billion in 2025 from €6.7 billion the previous year. This money will be invested in the construction of social housing — subsidized apartments for low-income families, projects for climate-friendly construction, turning commercial areas into residential areas and promoting homeownership for young you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
DW
3 days ago
- Business
- DW
Housing crisis: Germany plans 'turbo' construction boost – DW – 07/28/2025
Germany has a desperate shortage of affordable housing. The government now plans to take a "crowbar" to construction law to help get more homes built at "turbo" speed. "Building and housing is the social issue of our time," Germany's new Construction and Housing Minister Verena Hubertz told public broadcaster in May when she announced her plan to help ease the shortage of affordable housing. With the cabinet set to present its budget proposal for 2026 this Wednesday (30.7.2025), spending on housing is one of the focal points. In a country where it can take longer to get approval for a development project than it does to actually build it, Hubertz said she wanted to give local authorities a "crowbar" to get around labyrinthine urban planning laws. That crowbar labeled "Bau-Turbo" (construction turbo) is a new paragraph (§ 246e) to be inserted into the German Building Code. If the legislation is passed in the fall, municipalities will be given the opportunity to approve construction, change of use and renovation projects that deviate from the provisions of the Building Code if those projects serve the construction of new residential buildings. Planning applications will also be automatically approved after two months unless vetoed by the municipality. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Building regulations vary between each of the 16 states and among municipalities, which has resulted in an ever-growing patchwork of rules governing everything from the number of electric sockets per room to the shape and color of roofs. The Construction Ministry estimates its legislative amendment, to be passed by the Bundestag in fall, will save companies, citizens and local authorities around €2.5 billion ($2.9 bn) a year. Tim-Oliver Müller, the managing director of the Federal Association of the German Construction Industry (HDB), said he welcomed the government's plans but warned that housing construction "would not pick up again overnight." "The law alone will not result in a single new apartment, but it will make it easier for local authorities to approve them," Müller told DW. The construction industry has been hit by a "melange of crises," he said, largely as a result of Russia's full-scale invasion of Ukraine, rising energy prices, the increased cost of materials such as concrete and steel, inflation and a jump in interest rates from below 1% to between 3% and 4%. Müller is convinced that the new changes to the law would not lead to a reduction in quality — standard regulations, for example, with regard to fire safety and structural integrity,which remain in place. The new legislation is "purely a creation of possibilities, for example, with regard to building extensions or changing the designation of land from commercial to residential, something that was not previously possible," Müller explained. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Environmentalists have expressed concern about the easing of planning regulations because they fear that green spaces will be built on as new development projects are waved through with less time for local residents to object. "Only with green spaces can we buffer [heatwaves]. Because these green spaces provide active cooling," Stefan Petzold from the nature conservation association NABU told . Another person concerned about hot air is Matthias Günther, the head of the Pestel Institute, which conducts research on areas like the economy and housing for the public and private sectors. He described the new legislation as "a lot of hot air" that will "not achieve anything in the short term." "Additional paragraphs and sections will be added to the Building Code, creating more bureaucracy. Some things will require the consent of the municipality and, especially when it comes to building, they often have problems getting a majority because there's always someone who doesn't want it," Günther told DW. He says that what Germany really needs is an economic stimulus package for housing construction starting in the fall and accompanied by a loan program with interest rates fixed at 2% for the next 20 years. "The city would essentially pass on its more favorable credit conditions. It wouldn't cost that much. Everyone I talk to says that if they could get financing at 2% then they would start building again," economist Matthias Günther believes, adding that a similar scheme had already proven successful in Poland. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The desperate lack of housing is one of the main reasons why rents have been exploding in big German cities, says Bernard Faller from the Federal Association for Housing and Urban Development (VHW). More than half of the population of Germany lives in rented accommodation — the highest share in the European Union. While Germany has some of the strongest tenant protection laws in the world, Faller said those laws serve to protect existing tenants and work against those who want or need to move — particularly young people and large families. "The problem remains the same: there are too few homes to meet demand," he told DW. The construction turbo plans are a "very exciting experiment," according to Faller. "Until we come up with something better, and I can't think of anything better, the key to easing the overheated housing market, to curbing rising rents, is for more affordable housing to be built," he said. Germany will need approximately 320,000 new homes every year until 2030, according to the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). The previous federal government, which lost its majority in the February 2025 election, had promised to build 400,000 homes a year. But by 2024, that figure was just 251,900 — 14.4% down on the previous year. The new coalition of the center-right bloc of Christian Democrats and Christian Social Union (CDU-CSU) and center-left Social Democrats (SPD) is planning to boost the Construction Ministry's budget for 2025 to €7.4 billion in 2025 from €6.7 billion the previous year. This money will be invested in the construction of social housing – subsidized apartments for low-income families, projects for climate-friendly construction, turning commercial into residential areas and the promotion of home ownership for young you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
Forbes
09-07-2025
- Business
- Forbes
Virginia Shows A Smarter Path To Regulatory Reform
Virginia Governor Glenn Youngkin speaks at an event on July 8th to announce achieving a 25% ... More reduction in state regulatory requirements. Governor Glenn Youngkin's recent announcement that Virginia has surpassed its 25 percent regulatory reduction goal marks a decisive moment not just for the Commonwealth, but for the national conversation around government reform. While the Department of Government Efficiency (DOGE)—the flagship of President Trump's second-term administrative overhaul—has generated the most headlines with its dramatic cuts to federal staff and contracts, it is Virginia's quieter, evidence-based approach that may deserve the spotlight. Virginia Surpasses Targets with Real, Measurable Gains On July 8, Governor Youngkin announced that the Office of Regulatory Management (ORM), which he established by an executive order in 2022, had reduced 26.8 percent of regulatory requirements in the Virginia Administrative Code, yielding more than $1.2 billion in annual savings for Virginians. ORM also worked with state agencies to cut 11.5 million words from state guidance documents—a 47.9% reduction. This strategy has produced concrete results. For instance, reforms to Virginia's Building Code lowered the cost of constructing a new home by over $24,000. This single change is expected to save Virginia homebuyers $723 million per year. Faster licensing at the Department of Professional and Occupational Regulation has cut approval times from 33 days to just five, yielding $179 million annually in additional worker earnings. Updates to stormwater permitting processes have produced another $124 million in savings, while a new Virginia Marine Resources Commission's general permit framework reduced costs by $47 million. These reforms, which have been supported by an updated cost-benefit analysis framework, have reduced costs but also improved policy delivery. A new Virginia Permit Transparency (VPT) portal, launched in 2024, tracks over 100,000 permits issued annually, enabling agencies and the public to monitor applications. Since its implementation, the Department of Environmental Quality has slashed average processing times by 70 percent. How Virginia's ORM Compares to the Federal DOGE These successes are not cherry-picked anecdotes. Rather, they are part of a consistent pattern of measurable administrative savings across agencies. In contrast, DOGE—helmed by Elon Musk and charged with eliminating waste at the federal level—has taken a sledgehammer approach. DOGE has aggressively targeted agency budgets, slashed staffing levels, cancelled grants, and rescinded contracts. Agencies like USAID have seen sharp staff reductions, and programs touching diversity, foreign aid, and climate change have all faced steep cuts. While DOGE's interventions may yield modest budgetary savings, its approach has been criticized for its volatility and bluntness. There is little in the way of systematic regulatory review or analysis. Moreover, as of mid-2025, DOGE's focus has remained largely fiscal. Regulatory streamlining, let alone comprehensive cost-benefit analysis, has not been a centerpiece of its strategy. DOGE may be bold, but Virginia's ORM is smart. Where DOGE has wielded a chainsaw, ORM has used a scalpel. The Case for Evidence-Based Regulation A fundamental distinction between DOGE and ORM is epistemological. ORM's reforms are grounded in economic analysis. Each proposed rule must be subject to a cost-benefit analysis and demonstrate efficacy. Agencies consider distributional impacts on families, small businesses, and local governments. This is not red tape for red tape's sake. Instead, it's a set of economic and legal requirements to ensure that regulation serves the public interest without imposing unjustified burdens. Furthermore, ORM's reforms have sped up and improved governance. Despite new layers of analysis, average gubernatorial review time for regulations fell from 80 days to under 10 days. This counterintuitive result underscores that better analysis can speed up, rather than delay, decision-making. DOGE's strategy, by contrast, has eschewed such analysis in favor of immediate disruption. While that may appeal to voters hungry for change, it is a fragile strategy prone to backlash. Regulatory reforms that balance costs and benefits are more likely to prove enduring than ones that just reduce headcounts or eliminate programs for the sake of doing so. Without stakeholder buy-in, even highly significant short-term changes are unlikely to last. Permitting Reform Is A Bipartisan Revolution in the Making Virginia's VPT portal and Youngkin's accompanying Executive Order 39 are emblematic of ORM's more pragmatic approach. Permitting reform is one of the most discussed yet under-delivered policy reforms today. Delays in permit approvals stymie housing development and energy and infrastructure expansion. By digitizing the permitting process and making it more transparent, Virginia is making inroads towards reducing these bottlenecks. The VPT portal now covers permits from agencies representing most of the state's environmental and public infrastructure footprint. The website provides Gantt charts showing each application's progress on the way to obtaining a permit. This level of transparency is absent even in federal permitting dashboards. Toward a Sustainable Reform Agenda Compared to DOGE, Virginia's ORM operates on a more lean budget and staff—just four full-time employees oversee the Commonwealth's regulatory streamlining. Yet their influence has been profound. This raises the question as to why more states haven't adopted such a model. One reason may be the ephemeral nature of executive orders. ORM, for all its successes, is not yet codified in law. A change in administration could unravel its progress overnight. As other states look to Virginia as a model, they too should consider institutionalizing reform efforts to guarantee durability beyond one political cycle. Conclusion: The States as Laboratories of Bureaucracy Supreme Court Justice Louis Brandeis famously called states the 'laboratories' of democracy. Virginia is a great example of a laboratory of bureaucracy. The Commonwealth's methodical approach to regulatory modernization offers a replicable model for states and the federal government too. As President Trump's DOGE winds down its high-profile crusade against government waste, policymakers should ask themselves whether spectacle alone is enough. Cutting for the sake of cutting is not reform—it is performance. Virginia's success proves that a quieter, more technocratic approach grounded in expertise, transparency, and responsiveness to evidence can deliver greater and more lasting returns. As the 2026 gubernatorial elections approach in states across the country, legislators would do well to examine Virginia's model. With billions in savings and a more accountable administrative process, ORM may very well be the most important government reform initiative you haven't heard about.
NZ Herald
09-07-2025
- Business
- NZ Herald
Far North building costs to reduce as Government cuts insulation rules
Building a home in the Far North may soon get cheaper, with the Government set to ditch a costly insulation requirement and consider the region's warmer climate under the Building Code. Earlier this year the Far North District Council wrote to the Minister of Building and Construction Chris Penk and
CBC
04-07-2025
- Business
- CBC
Toronto releases pre-approved designs for garden, laneway suites in bid to boost housing
Toronto is rolling out several measures to cut design costs and speed up permit approval times in its latest bid to boost construction of new housing. "Life in Toronto has become very expensive and housing is the biggest expense every month," Mayor Olivia Chow said at a news conference at city hall Friday. Recent surveys by city staff suggest some Torontonians are spending up to 63 per cent of their incomes on housing, more than double the roughly 30 per cent recommended by financial experts, Chow added. "It's simple: Toronto is growing and we must lower the cost of building homes and make it easier, and approve them faster," she said. One of the newly announced initiatives includes free design plans for laneway and garden suites. The pre-approved plans are compliant with the Ontario Building Code and eliminate the need to hire an architect, Chow said. The city first passed an as-of-right zoning bylaw for laneway suites in 2018, and for garden suites in 2022. The changes were intended to significantly increase Toronto's housing stock as rents and home prices skyrocketed. But only 166 laneway suites and 114 garden suites have been completed since city council moved ahead with those approvals, Chow said. The takeaway, she continued, is that zoning changes alone were not enough to spur construction on the level needed to meet housing needs in the city. Other measures announced by Chow include expanded online applications for new housing units, which she said will reduce the time it takes for them to be processed. Similarly, as of July 14, more building plans stamped by a licensed, professional engineer will be considered pre-approved, allowing for the city to review new building proposals faster. The city first introduced its "Professional Engineer's Seal" program as a pilot last year, and it will now cover accessory structures like laneway and garden suites. The new measures come after city council voted last month to allow sixplexes in nine wards, with an option for the remaining 16 wards to opt-in at a later date. , but some councillors vehemently objected to the proposal.
