Social housing is booming: Cologne project in tune with the times!

Social housing is booming: Cologne project in tune with the times!

Something is happening in the area of ​​social housing in Cologne. The focus is on a special project: the “Porzer Cube”, which was launched by Michael Ammann. Planning for this construction project began in 2019, but it now appears that the entire direction has changed.
Originally, three apartment buildings were to be built here with a mix of 60% publicly subsidized social housing and 40% privately financed rental apartments. But during the construction phase there was a decisive change: all apartments are now being converted into social housing, which, devil knows, can only be rented out with a residential entitlement certificate (WBS). Ammann justified this decision with the unprofitability of the privately financed apartments. “Something is going wrong in the current market situation,” is his assessment. The high construction prices and interest rates, which rose especially in 2022, have forced the project to focus on social housing, which can be made more attractive thanks to state subsidies, even if rents are capped.

The development in social housing can be observed not only locally, but also nationwide. The federal government is supporting the growth of social housing with additional federal subsidies. These are expected to increase from 3.5 billion euros in 2023 to 5.5 billion euros by 2028, which represents a clear message for more social housing. In many German cities, finding affordable housing is becoming increasingly difficult, so politicians are actively striving for a renaissance in this area. According to Süddeutsche Zeitung, the federal government plans to increase funding to a total of 23.5 billion euros by 2029. For many families with solid incomes, high rents are a challenge.

Government support and low-interest loans

Private investors and municipal housing companies play an important role in this development. They are supported through various programs to create affordable housing for people with limited access to the general housing market. This collaboration is a central pillar of social housing promotion in Germany. In North Rhine-Westphalia, for example, there are low-interest loans for social housing that are even zero percent for the first five years and then run at 0.5% for 25 years. This makes the project more attractive for investors.
In addition, there are repayment subsidies of up to 40%, which make it easier to finance these important projects, as socialer-wohnungsbau.de explains.

Despite these positive developments, there are also concerns about the social policy direction. In this regard, Ammann expressed his concerns about the increasing number of social housing and called for stricter requirements for investors. In his opinion, better conditions must be created for the construction of classic rental apartments and the KfW 40 standard must be abandoned. This could also advance the discussion about reintroducing funding for efficiency houses 55, which previously cost six billion euros annually.

A look at the future

So what is the outlook for the people of Cologne? Social housing construction has the opportunity to address fundamental social aspects not only in the city, but also throughout Germany. Current developments show that there is great interest in and need for social housing. The coming collaboration between state and private actors will be crucial in ensuring that housing in the cathedral city remains affordable, even for people with middle incomes.

In this sense, it is to be hoped that projects like the “Porzer Cube” are not only a start, but will also serve as a model for further social housing projects. Cologne has the potential to demonstrate a good hand in future housing policy so that all citizens can find a place to live.