21 Jan 2025

Tiny houses as a solution to the housing shortage?

Friedrich Merz could become the next German Chancellor. In the run-up to the election on 23 February, he is now proposing tiny houses to combat the scarce living space resources in the Federal Republic.

According to the real estate industry, there is a shortage of 800,000 homes in Germany. Other studies estimate a slightly lower figure. Nevertheless, everyone agrees that more living space is needed in the Federal Republic. And it should also be affordable.

Friedrich Merz, the CDU and CSU's candidate for Chancellor, has now brought tiny houses into play as a solution to the housing shortage in the current election campaign. Merz is planning a ‘turbo construction programme’ for houses between 60 and 80 square metres – excluding the cellar, but including a small garden. Merz wants to ‘mass-produce’ the houses.

According to the CDU leader's ideas, which he revealed in the Bild am Sonntag, the residential units for two people are to be ‘modularly planned and prefabricated’. The cost of each tiny house, depending on the furnishings and size of the property, is between 100,000 and 200,000 euros.

However, it is not clear exactly how Merz intends to implement his mini-house idea. Currently, the average living space in Germany is 55.4 square metres per person. Merz's idea would therefore reduce this space per resident.

How do Merz's ideas fare with industry experts?

‘Friedrich Merz's idea of producing more small residential modules for permanent living is fundamentally sound,’ says Johannes Laible. The publisher of the magazine “Kleiner Wohnen” and board member of the Tiny House Association continues: ’Interest in tiny houses and modular houses has been very high in recent years. However, a great many projects have failed due to legal requirements at the federal and state level, as well as municipal development plans.’

The issue is not the series production now being proposed by Merz. There are a whole range of manufacturers in Germany ready to take on this work. Laible: ‘The issue is the legal basis for the erection of small residential buildings. As long as this is not changed, Merz's proposal will not remain ineffective.’

Proposals of the Tiny House Association

The Tiny House Association has long been committed to facilitating the construction of tiny houses, residential modules and other small buildings for permanent living by changing the rules. ‘For example, the requirements for thermal insulation could be reduced for houses with a living space of less than 50 square metres, second row building could be made possible and redensification could be specifically promoted. Since tiny houses and modular houses are not tied to a specific location, they could also be set up on a temporary basis.’

In conclusion, Laible says: ‘Developers and house builders in this country are not lacking in will or ideas for the construction of small buildings, but simply in legal relief to make living in them possible at all. The future federal government must introduce quick-acting changes here.’

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Matthias Jundt
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