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Federal Government Ends Housing Shortage and Creates a Boom for Eastern Germany and Rural AreasIt was a bombshell that was presented on February 2, 2026, during the press conference at the Chancellery. The federal government is solving several problems at once.
On the one hand, there is the housing shortage in Germany, which is mainly rampant in the major cities. Across the country, 1.4 million apartments are missing, according to the “Social Housing Monitor 2026”. On the other hand, especially in eastern Germany apartments are being torn down. And this is exactly where the federal government steps in. Press conference on February 2, 2026, BerlinFederal Chancellor Friedrich Merz: Ladies and gentlemen, yesterday, on Sunday, Federal Finance Minister Lars Klingbeil, Federal Minister of Labour and Social Affairs Bärbel Bas, and I agreed that we must find a solution to one of the most pressing problems in Germany. And we have found this solution. Tomorrow we will put the new “Relocation Opportunities Act – Perspective Eastern Germany” to a vote in the Bundestag, and already on Wednesday the Bundesrat will approve this law. With this law, we will not only end the housing shortage, but also trigger a boom in eastern Germany and rural areas. Rent control and rent caps do not work. The big cities are overcrowded, while housing is being demolished in eastern Germany. Especially at a time when resources are scarce and expensive, this is no longer acceptable. And yesterday at our joint breakfast we developed the solution to this. Federal Finance Minister Lars Klingbeil: Germany is in a recession. Therefore, we need measures that relieve the federal budget so that we can continue to meet our obligations to Ukraine and in terms of climate protection. And this measure is as simple as it is brilliant: the “Relocation Opportunities Act – Perspective Eastern Germany”. Because it is always also about giving people who have become unemployed new chances and perspectives. Federal Minister of Labour Bärbel Bas: The new “Relocation Opportunities Act – Perspective Eastern Germany” provides that people who have lost their jobs in their current living environment and have little prospect of new employment are given the chance to start over. The district administrators and mayors of cities and municipalities, especially in eastern Germany, were just instructed by the Chancellor’s directive authority to determine how many apartments are vacant and to what extent these may need renovation. This data will go to the employment agencies and job centers in order to assign unemployed people from the metropolises there. Federal Chancellor Friedrich Merz: Unemployment is not tied to a place. No one has to be unemployed where housing is scarce and rents are high. We do not have a problem with building housing, we have a problem with distributing people across the available housing. We will change this with the new “Relocation Opportunities Act – Perspective Eastern Germany”. Federal Finance Minister Lars Klingbeil: With this, we kill several birds with one stone. Relocation, especially to eastern Germany and rural areas, will lead to a mental improvement for those affected. Nature is practically right on the doorstep. People there will no longer be depressed and will recharge their strength and energy better than if they constantly look at nothing but concrete, clogged streets, and dissatisfied faces in the metropolises. Federal Minister of Labour Bärbel Bas: In order to promote and accelerate the relocation and thus the opportunities that arise, subsidies such as housing benefits for those affected will be reduced to the level that is merely necessary where the assigned domicile will be. That is a level which in eastern Germany and rural areas – for example in villages around Nebra, Naumburg, or Zeitz – is completely sufficient. It makes no sense that unemployed people block overpriced apartments in metropolitan areas when there is plenty of cheap housing in Germany. In addition, there will be moving subsidies and renovation vouchers. In a first step, those who worked in construction will get new opportunities, because these people know how to put buildings back in order. Federal Chancellor Friedrich Merz: Jobs arise where people are. Where people settle, there is a need for bakers, blacksmiths, potters, masons, craftsmen, and so on. Resettlements have always ensured an upswing. Recall the Salzburg exiles or the Flemish, who, for example, settled in Flemmingen near Naumburg. There they used their new chance and built a new life for themselves and their families. Federal Finance Minister Lars Klingbeil: Eastern Germany in particular has recorded a population decline of 2.4 million people since 1990. This deficit will be compensated again by the new “Relocation Opportunities Act – Perspective Eastern Germany”. This ultimately saves at least 127 billion euros per year, which we urgently need in the fight for our democracy, our freedom in Ukraine, and climate protection. Federal Minister of Labour Bärbel Bas: The question has already been raised as to whether there will be a compulsory relocation, since this would mean a restriction of freedom of movement. We can clearly deny this. No one will be forced. On the contrary: with this law we create incentives to seize the opportunities that arise in rural areas and eastern Germany. New surroundings, new neighbors, new social structures that will enrich life. In addition, every affected person will receive a grace period of three months before the “Relocation Opportunities Act – Perspective Eastern Germany” applies to them. Another question was how this affects parents who are currently in nursing homes and who might only be visited rarely if their children relocate. Of course, we support the idea that such relatives in need of care can also change their place of residence, especially since the costs of nursing homes are lower in the East. Federal Finance Minister Lars Klingbeil: The East has caught up in many areas when it comes to the internet. The fiber-optic expansion is underway. As a result, students are no longer dependent on having to live in overpriced dormitories in university cities. One area of the new “Relocation Opportunities Act – Perspective Eastern Germany” also concerns this topic, studying. This will become much more flexible and cheaper online. Universities have already been instructed to immediately create the corresponding prerequisites. Federal Chancellor Friedrich Merz: You see, everything has been thought of. This package of measures will massively relieve the housing market in the metropolitan areas in a very short time, rents will also fall there, and it will lead to a boom in eastern Germany and rural areas. We have already received excellent feedback, for example from the Burgenland district. Yesterday evening, for instance, the Lord Mayor of the city of Zeitz informed us that this will finally make it possible to renovate and repopulate streets like Rahnestrasse, which have been decaying since reunification. An assignment of housing for the unemployed will significantly improve the cityscape. But there are also many houses in the villages that are falling into disrepair. These will be immediately expropriated by the cities and municipalities as part of substitute enforcement measures and handed over for rapid renovation by unemployed construction workers. Unemployed families with children will certainly look forward to a small house with a garden for organic farming and keeping small animals. In addition, the unemployed bring their unemployment benefits and basic income support with them, which will significantly increase purchasing power in these regions. Thank you for your attention. Author: AI-Translation - АИИ | |
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