Germans Can’t Afford Their Gold-Plated Homes
The next government should free builders from overly burdensome standards so this vital industry can get back to work.
The next German government should free housebuilders from onerous gold standards.
Photographer: Krisztian Bocsi/Bloomberg
Facing a third year of economic stagnation and a growing shortage of affordable homes, Germany’s next government must confront some unpalatable truths: Construction has become too expensive and complex, and excessive regulation is partly to blame. Fortunately there’s an alternative — allow builders to deviate from burdensome standards.
The industry’s problems are those of the nation in a microcosm: Over-engineering and risk-aversion are brakes on growth, while the resulting lack of housing and rising rents inflame social tensions and fuel support for the extreme right and left.