New Building Minister Hubertz signals shift in housing policy

Germany’s new Federal Minister for Housing, Urban Development and Building, Verena Hubertz, has wasted no time outlining her priorities—and they suggest a sharp turn in policy tone. Within 100 days, the 37-year-old SPD minister aims to push through emergency legislative reforms to accelerate construction, tighten rent regulations, and reframe the housing crisis as a matter of national urgency.

Her chosen instrument: Section 246e of the Building Code, described by Hubertz as “the sledgehammer we need.” The draft provision, carried over from the traffic-light coalition, would empower municipalities to permit entire neighbourhoods without the usual zoning or urban planning procedures. Critics, including architects, tenant groups and environmental bodies, have called it a recipe for low-quality sprawl. Hubertz, however, insists the aim is clear: “build quickly instead of dying beautifully.”

Backed by a new CDU-SPD coalition and freed from the procedural vetoes of the FDP, the SPD now has political latitude to drive forward reforms previously stalled. Hubertz is leveraging this momentum not only on permitting and construction speed, but also in the rental market—an area of immediate concern to private-sector landlords.

A suite of measures is under review, including the reintroduction and extension of rent controls, stricter rules on index-linked rents, and curbs on furnished lets used to bypass caps. While the CDU has reluctantly conceded ground on these items in the coalition agreement, implementation details remain contentious. Still, with SPD Justice Minister Stefanie Hubig as a key ally, Hubertz has a clear pathway to legislate.

Investors should also note the shift towards prefabrication, timber construction and 3D-printing techniques. Hubertz is targeting a faster, industrialised approach to new-build completions, particularly for affordable housing. She has called for a simplification of technical standards and permitting procedures, echoing the priorities of developers long stymied by federal and local bureaucracy. The new minister has also endorsed broader redensification and land designation strategies, even at the cost of local political resistance. “Approval should not take longer than construction,” she told the Bundestag.

Budget constraints threaten affordability ambitions

Still, budgetary uncertainty hangs over much of the agenda. Until a new federal budget is passed—expected by late June—her ministry operates under provisional rules. Funding for housing subsidies and energy-efficient refurbishment programmes will continue, based on previous pledges by her predecessor Klara Geywitz. But Hubertz is pushing for new investment subsidies to support genuinely non-profit housing, including long-term affordability measures tied to tax incentives. On this, CDU resistance is already hardening.

The ZIA’s president Iris Schöberl welcomed the appointment, citing Hubertz’s mix of entrepreneurial drive and political experience. “She knows how to pull the right political levers,” Schöberl said. Other industry figures have expressed cautious optimism, tempered by the recurring fear that administrative blockages at Länder and municipal level may yet stifle delivery.

Tenant groups, by contrast, are solidly behind the minister. The German Tenants' Association said it expects quick action on extending the rent cap, closing loopholes, and halting speculative conversions of rental units into condominiums. “The housing crisis is the defining issue of our time,” said president Lukas Siebenkotten.

The minister’s CV lends weight to her reformist ambitions. A business economist by training, Hubertz co-founded the cooking platform Kitchen Stories in 2013, which she sold before entering parliament in 2021. As vice-chair of the SPD parliamentary group, she was responsible for housing, energy and economic policy—an unusual blend of experience in a cabinet otherwise dominated by career politicians.

Whether this momentum can be sustained is far from certain. The plan to override local zoning through Section 246e will require not just Bundestag support but Bundesrat consent. Legal pushback and procedural inertia are likely. Likewise, efforts to use tax reform to counter state-level property transfer taxes face stiff resistance.

Still, the new minister has declared herself ready for confrontation. For now, investors should take her at her word. Hubertz is moving quickly—and the industry may not have long to adapt.