North German Housing Summit: This is how building finally becomes cheaper!
North German Housing Summit in Hamburg on June 25, 2025: Politicians discuss cheaper construction and housing development.

North German Housing Summit: This is how building finally becomes cheaper!
At the second North German Housing Summit in Hamburg, construction ministers from the northern German federal states gathered to discuss new ways of affordable construction. Together, they strive to reduce construction costs through collaboration and knowledge sharing, reports NDR.
Hamburg's urban development senator Karen Pein (SPD) emphasizes that the states must benefit from “swarm intelligence”. Each federal state brings its own specific knowledge: While Hamburg is an example of reducing building regulations, Schleswig-Holstein focuses on affordable social housing. Mecklenburg-Western Pomerania, on the other hand, is a pioneer in digitalization in the construction sector.
Common challenges
In a joint declaration, the construction transition was described as a central challenge. When it comes to sound and fire protection as well as building technology, the department heads are calling for a rethink. Reference is also made to the amendment of the building regulations in order to set the course for the future VDIV Central Germany reported.
An innovative approach that is being discussed is building type E, which is seen as groundbreaking for the building transition. In order to improve the climate targets in the building sector, the federal government is required to create the civil law requirements. Summit participants also emphasized the importance of affordable housing and tested neighborhood-based solutions that could be useful in both urban and rural areas.
Suggestions for cost reduction
Optimizing construction costs is the focus of the discussions. Suggestions such as reducing ceiling thicknesses by three centimeters or installing elevators less frequently could help significantly reduce the burden on finances. Even fewer sockets in children's rooms are part of the radical approach to creating cheaper living space.
As the Northern Statistics Office reports, there was a 39% increase in new apartments in 2024 compared to the previous year. Hamburg Mayor Peter Tschentscher and Finance Senator Andreas Dressel praise the agreement between the federal and state governments and are optimistic about faster relief for the economy.
Political framework conditions
Although the initiatives from Hamburg and Schleswig-Holstein could serve as an example for the whole of Germany, political implementation remains a challenge. After Chancellor Olaf Scholz canceled a housing summit due to the break in the traffic light coalition, there were protests from tenant representatives and civil society organizations. The German Tenants' Association criticizes the traffic light government for its inadequate measures to protect tenants.
For housing construction, the prospect of an “alliance for affordable housing and construction” remains unfulfilled because the necessary funds and political majorities for comprehensive solutions are lacking. The industry is calling for faster approval processes and targeted funding for the urgently needed affordable housing, as well as through Haufe explained.
Overall, it is clear that the search for solutions for affordable housing is a top priority for everyone involved. The aspects of collaboration and knowledge exchange that have been mentioned several times and the idea of innovative building forms could be the key to creating housing that remains affordable for the general population.