Mr. Rentsch, in last year’s interview, you emphasized the importance of making it easier for young households to buy property. Has there been any positive change?
The hurdles to purchasing property — especially for young people — remain too high. Many are losing hope that they will ever be able to afford their own home. As a result, the homeownership rate is declining, and Germany is falling even further behind in the European comparison. The “building turbo” announced by the new federal government is certainly a step in the right direction, but more must follow. Initial amendments to the building code are not enough to cut through the Gordian knot of the housing crisis. Even the well-intentioned KfW funding program “Young buys Old” misses the mark due to its limitations and does not reflect the realities of the housing market. Adjustments are clearly needed here.
From your perspective, what specific measures are necessary to be more successful in the future? What insights does the latest Sparda Study provide?
In our study, we outlined several concrete solutions. Public subordinated loans via KfW, for instance, could allow buyers to purchase a property with less equity. There’s already a working model for this in Schleswig-Holstein. Or, as seen in Luxembourg, the public sector could act as guarantor for private mortgage loans. Also, the construction process must become easier — both for potential buyers and construction firms. This means cutting back on bureaucracy and simplifying the often overly complex legal framework. For example, the varying building regulations across German states hinder cost reductions through serial construction.
Already in our previous study, we highlighted the need to improve conditions for energy-efficient renovations in private properties. Current KfW incentives are not sufficient. We propose tax benefits and a reduction in additional acquisition costs to make such renovations worthwhile.
Frankfurt remains a key financial hub, but housing has become increasingly scarce. What, in your opinion, needs to happen at the municipal level to address the growing demand for affordable housing — and how can cooperative banks contribute?
As mentioned earlier: the “building turbo” needs to be implemented quickly — meaning fast permits, flexible construction and zoning rules, and a reduction in acquisition costs. Land must be actively designated for development, and the often overly restrictive land-use policies need to be relaxed.
But beyond politics, the banking sector also has a role to play. We need tailored solutions for young households, combining mortgage lending with targeted advice on available subsidies. At the Sparda Group, we see it as a core task to help prospective buyers navigate the bureaucratic maze. One step in this direction was the introduction of qualified sustainability consultants in real estate financing. Cooperative housing projects could also be part of the solution — but, as mentioned, the overall conditions must be improved to make this viable.