Germany housing ministry unveils construction cost reduction plan

The German Federal Ministry for Housing, Urban Development and Building has introduced an action plan to reduce construction costs. A key component of this 13-point plan is the increased use of secondary raw materials in building construction to decrease reliance on global supply chains and lower costs.

The industry association bvse supports the initiative, noting that while legal frameworks for recycling and reuse are being developed, the primary obstacle is industry hesitation rather than waste law. Using recycled materials can reduce costs and transport distances, especially when processed directly on construction sites.

In related budgetary developments, the ministry’s proposed budget for the upcoming year includes 7.51 billion euros in expenditures. The plan allocates approximately 5.17 billion euros for investments, an increase of 374.4 million euros compared to 2026. Notably, funding for social housing is set to rise from 2.65 billion to 3.28 billion euros, while housing allowance (Wohngeld) payments are projected to decrease from 2.43 billion to 1.81 billion euros as part of a restructuring effort to consolidate the federal budget.