Mannheim urgently needs more living space: IG BAU calls for a new building offensive!

Mannheim urgently needs more living space: IG BAU calls for a new building offensive!

There is an urgent problem in Mannheim: the construction of new apartments is not progressing at the desired pace. Last year only 742 new apartments were built, of which 119 were in single and two-family houses. The construction costs for these construction projects totaled an impressive 83.1 million euros. In view of these figures, IG BAU Nordbaden is calling for a comprehensive new construction offensive, especially for social housing and affordable housing. Wolfgang Kreis, the chairman of IG BAU Nordbaden, emphasizes that construction costs must be drastically reduced - by 25 to 33 percent in order to improve the supply of living space. This view is supported by a current study by the building research institute ARGE (Kiel), which underlines the necessity of these measures.

But where are the hurdles? IG BAU advocates de-bureaucratization in the construction industry. A promising concept is building type E, which is intended to enable cost-effective construction by using smaller material thicknesses for ceilings and walls. Another cost driver that is often overlooked is the technical installations – heating, ventilation, plumbing and electrical. Here, too, it would make sense to rethink the approach and perhaps do without fewer car parking spaces or even underground parking spaces in order to save additional costs.

Challenges and opportunities in housing construction

As the BMWSB states, external factors have a significant influence on construction costs. The Russian attack on Ukraine has significantly increased interest rates and construction prices. This meant that housing construction came under severe pressure. However, the federal government has already taken measures to support the construction industry. A ray of hope: As of February 2025, building interest rates have fallen significantly since the end of 2023, which has resulted in a revival of the housing market. In 2023, residential construction accounted for 57 percent of the total construction volume - this shows that the demand for living space remains high.

The problem remains, however, that at least 11 billion euros in funding are required to build 100,000 new social housing units every year. In addition, at least 4 billion euros in subsidies are still necessary for 60,000 affordable apartments per year. Building type E could be legally strengthened through an upcoming change to the German Civil Code (BGB), which is due to be decided in the Bundestag in autumn 2024. A pact passed a few months ago to accelerate planning, approval and implementation is already showing initial success - progress has been made in 80 percent of the projects.

Future of the housing market

A promising project could be the Franklin Village in Mannheim, which was planned by Sauerbruch Hutton and could set new standards. Such innovative approaches are essential to meet the challenges of the housing market. However, the question remains whether they can be implemented quickly enough to adequately supply the growing population in the metropolises. The sharp rise in building land prices - over 600,000 residents now pay around 1,000 euros per square meter - does not make housing construction any easier, especially since the total number of social rental apartments in Germany was around 1.07 million at the end of 2023, which corresponds to a decrease of 18,000 apartments compared to the previous year.

The situation on the housing market is therefore both challenging and full of opportunities. It remains to be seen how the political decisions and planned measures will be implemented in the coming months and years and whether they will actually have the desired effect. One thing is certain: there is still a lot of work to be done to cater to the public looking for accommodation in Mannheim and beyond.