Overview of the Publication
The article, published by the vbw Verband baden‑württembergischer Wohnungs‑ und Immobilienunternehmen, presents the association’s analysis of the steep decline in residential construction in Baden‑Württemberg and outlines policy measures required to reverse the trend. The vbv’s president Peter Bresinski and director Dr Iris Beuerle are quoted throughout, providing the association’s perspective on the housing market and its regulatory environment.
Decline in New Housing Construction
In 2025 the vbw’s 276 member housing companies completed only 2 815 dwellings, a 31 % drop from the 4 084 units built in 2024. Across the state, total new completions fell to 24 899, roughly an 18 % decrease year‑on‑year. The shortfall is attributed to rising construction costs since 2021, higher financing rates since 2022, and extensive regulatory burdens.
Quantified Housing Deficit
The Pestel Institute estimates a deficit of 192 000 apartments in Baden‑Württemberg as of autumn 2025. To meet demand by 2030, it projects a need for about 44 000 new units annually – a level far beyond current output. Even with a 12 % rise in building permits to 23 071 in 2025, the figure remains well below the 45 000 permits recorded in 2021.
Rental Market Pressures
Average net cold rent for the association’s members stood at €7.91 per m² in 2025, a 3.26 % increase. This is still below the statewide average of €8.13 per m² (2022). However, operating costs have surged: warm‑water and heating costs rose 10.98 % to €1.82 per m², while cold‑service costs grew 4.91 % to €1.71 per m², adding a “second rent” burden for tenants.
Policy Measures from the Coalition Contract
The vbw stresses that the state’s coalition agreement sets the right strategic direction but requires concrete implementation. Key proposals include co‑financing federal housing funds at the same level within the state programme, establishing a simplified “BW‑Standard” for construction that reduces over‑regulation, and ensuring stable, long‑term funding mechanisms for affordable housing projects.
Simplifying Construction Standards
The “BW‑Standard” aims to focus on statutory minimums, eliminate costly over‑requirements, and promote efficient building practices in areas such as energy performance, structural design, material use, and parking provision. The vbw points to comparable simplified standards in Schleswig‑Holstein and Hamburg as models for adoption.
Accelerating Permitting and Digitalisation
The association calls for faster, digitalised approval procedures, reduced bureaucratic steps, and targeted training for building officials. It also advocates for a more flexible approach to parking obligations, arguing that municipal adjustments could lower construction costs and, consequently, rents.
Reorienting Funding and Financing
Proposals include extending the duration of funding commitments, shortening the waiting period for grant approvals, and enabling the use of state guarantees to improve financing conditions for non‑profit housing providers. The vbw opposes the “first‑come‑first‑served” (Windhund‑prinzip) allocation of funds, suggesting priority for projects that can deliver rapid, price‑controlled housing.
Sustainable and Affordable Housing Outlook
While the vbw recognises modest improvements—such as the rise in building permits and the introduction of the BW‑Standard—it warns that these gains are insufficient to address the scale of the housing shortage. The association urges swift, coordinated action from both federal and state governments to ensure that new construction becomes simpler, faster, and more affordable, thereby supporting sustainable living for residents across Baden‑Württemberg.