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President of the Association of the German Wood Industry (HDH)

'Politics are called upon now'

Regarding the data published by the Federal Statistical Office on the decline in building permits in 2023 by 27 percent to only around 260,000, Johannes Schwörer, President of the Main Association of the German Wood Industry (Hauptverbandes der Deutschen Holzindustrie, HDH), explains.

HDH President Johannes Schwörer. Photo: HDH / Ausserhofer.

'The massive decline in the number of building permits to the lowest level since 2012 shows: The turbulence in the construction industry is unfortunately much more than just a cyclical downturn. With inflation, rapid rise in interest rates, and lack of growth, a dangerous cocktail has formed, which is poison for climate-friendly construction.

If we don't act, it will get even more expensive.

Therefore, politics are urgently called upon now. What is needed is an activating promotion of new construction and renovation that reverses the current trend so that more living space is created again. Without external interventions, the market threatens to continue shrinking significantly in times of increasing demand for housing, with all the negative consequences for the economy and society that loom.

There are sensible proposals for targeted government action for more climate-friendly living space on the table. Now the implementation must follow. Otherwise, it will get even more expensive, such as through even higher social expenditures on housing benefits, which are looming. Targeted, increased construction subsidies are therefore money well spent.'

More information:
Hauptverbandes der Deutschen Holzindustrie

Alexander Knebel
[email protected]

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