The Association of the German Furniture Industry (VDM) and the Furniture and Kitchen Trade Association (BVDM) are calling on Germany's political parties to prioritize housing construction and develop concrete solutions for affordable living. The appeal comes as both associations warn that the ongoing housing shortage harms industries from construction to furniture and poses significant social conflict risks, according to VDM President Leo Lübke.
Lübke emphasizes that the new government must urgently address the housing market crisis by promoting new construction as part of the country's infrastructure. He highlights that the lack of affordable housing has led to rising rents, reduced disposable incomes, and increased social tension.
BVDM President Markus Meyer notes that while the coalition's exploratory paper briefly addresses housing and construction, the topic lacks detail. Meyer welcomes plans to accelerate approval processes and simplify building standards but criticizes the proposed extension of rent control measures, arguing it will not help achieve the annual goal of 400,000 new apartments.
The situation is worsening, with forecasts suggesting that the number of newly built apartments in Germany could fall to below 200,000 units annually — far below the target of 400,000. This decline threatens economic stability and endangers jobs across the entire value chain, from construction to interior design.
To address these issues, both associations are calling for tax relief, investment incentives, and long-term investments in infrastructure and innovation to support construction projects. Suggested measures include halving property transfer taxes, consolidating fragmented funding programs, and introducing subordinated loans for homeowners.
Since February 2025, the construction, furniture, and interior design industries have campaigned under the slogan “Germany’s Domestic Economic Power”, urging the government to create the necessary conditions to boost housing construction. The initiative warns that without decisive political action, rising rents, reduced incomes, and increasing social division will continue to pose significant risks.
