Merkel Pledges $7 Billion to Ease German Housing Squeeze
- German government targets 1.5 million new apartments, houses
- Surging rents have made housing a hot political topic
Sunlight falls onto the balconies of a block of residential housing located in Berlin.
Photographer: Krisztian Bocsi/Bloomberg
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Germany is seeking to counter surging rents and real estate prices with a pledge to invest more than 6 billion euros ($7 billion) to build new homes.
The program targets the construction of 1.5 million apartments and houses over the next four years, Chancellor Angela Merkel’s said in her weekly video address on Saturday. The plan involves 2 billion euros in federal funds for social housing projects as well as tax incentives to promote the development of affordable homes for mid-income earners. The government is also making money available to help families afford their own homes.