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Coalition Moves to Bar State Expropriations and Set Up Federal Home‑building Company

The plan seeks legal certainty to boost new affordable housing while key decisions on funding, partners, price rules and governance remain open

Overview

  • The CDU/CSU/SPD coalition agreed in early July to draft a federal law that would stop states from passing expropriation laws for large private housing portfolios and to create a bundeseigene Wohnungsbaugesellschaft (WBG) to build affordable homes.
  • Vonovia’s CEO Luka Mucic publicly welcomed the expropriation ban at the company’s half‑year presentation in Bochum and said Vonovia intends to bid as a project developer in WBG public‑private projects.
  • Tenant advocates in North Rhine‑Westphalia, led by the Deutscher Mieterbund NRW, rejected Vonovia as an acceptable WBG partner and demanded that any public subsidies carry permanent price‑binding for units.
  • Private landlord groups such as Haus & Grund warned a federal builder will not by itself solve core obstacles such as high construction costs, slow permits and labor shortages and that subsidized state competition could distort markets.
  • The WBG remains only a political intention with no settled capital, legal form, procurement rules or timetable, and the final design is likely to be contested ahead of the Berlin Abgeordnetenhaus vote on September 20.