German housing sector warns of construction slump over federal budget cuts
The housing‑construction association coalition — IG BAU, the Bundesverband Deutscher Baustoff‑Fachhandel (BDB) and the Bundesverband deutscher Wohnungs‑ und Immobilienunternehmen (GdW) — sent an urgent brand‑letter to Chancellor Friedrich Merz and other cabinet members after the federal budget announced new cuts for 2027. The letter demands that no funds be withdrawn from the housing sector, warning that a planned reduction of roughly €1.4 billion in new‑build housing funding will trigger a massive slowdown in residential construction, a lasting loss of skilled construction workers and could make the government's climate‑target achievement impossible.
The protest letter was addressed to Merz, Economy Minister Katherina Reiche, Construction Minister Verena Hubertz and Finance Minister Lars Klingbeil. The signatories argue that the cuts would hit the already fragile new‑build market hard, dampening investment, accelerating labour‑force out‑migration and jeopardising climate‑related renovation projects.
They call on the government to maintain existing funding levels to avoid severe short‑ and long‑term consequences for building, renovation and housing in Germany.
Entities: Friedrich Merz · IG BAU · Katherina Reiche · Lars Klingbeil · Martina Hirsch · Salzburg · Verena Hubertz · s Real Immobilien
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 8 SOURCES] The letter claims the cuts threaten Germany's climate‑target achievement. (party)
- [● 9 SOURCES] The protest letter was addressed to Chancellor Friedrich Merz, Economy Minister Katherina Reiche, Construction Minister Verena Hubertz and Finance Minister Lars Klingbeil. (party)
- [● 9 SOURCES] The letter was signed by IG BAU, the Bundesverband Deutscher Baustoff‑Fachhandel (BDB) and the Bundesverband deutscher Wohnungs‑ und Immobilienunternehmen (GdW). (party)
- [● 8 SOURCES] The housing‑construction association warned that the cuts could cause a massive slowdown in new residential construction. (party)
- [● 8 SOURCES] The letter warned that the cuts could lead to a lasting loss of skilled construction workers. (party)
- [● 9 SOURCES] The 2027 German federal budget plans to cut around €1.4 billion from new‑build housing funding compared with 2026. (party)