“We can realistically aim for a 50% reduction – it’s a very ambitious target,” Hubertz emphasized.
A key part of the strategy will be the use of prefabricated components, such as ready-made walls produced in factories, which significantly lower construction expenses—by 30–40%, according to her.
Hubertz estimates that the cost of building per square meter could fall from the current €5,000 to around €2,500–3,000.
She also noted other cost-driving factors in housing projects, adding, “I’m convinced we can do even more if we also look at financing costs. That would give us a more complete picture.”
Another area the ministry plans to tackle is the rising cost of land. Hubertz announced work on new policies to curb this trend, including expanding the use of long-term leasehold arrangements (Erbpacht). “There’s no single button you can press. We have to look at the entire life cycle of a building and all cost factors involved,” she admitted.
When asked about the goal of building 400,000 new homes annually, Hubertz clarified that this target wasn’t included in the federal coalition agreement: “That’s the right approach. You can’t set fixed goals four years ahead when the world around us is changing so rapidly.”
What’s Being Planned in Poland?
In Poland, Donald Tusk’s government is also pledging a deep shift in housing policy. After years of ineffective attempts to resolve the housing crisis, the ruling coalition plans to increase mortgage accessibility, boost social housing, and release more land for development. Key reforms are set to come into force in 2025.
At the heart of the new strategy is the “Housing Start” (Mieszkanie na Start) program, launching mid-2025. It will allow people under 35 to apply for mortgages with historically low interest rates—between 0% and 1.5%. Families with children will receive special support.
The program is designed to address the challenges young people face when trying to purchase their first home. However, the government aims to avoid repeating the problems of the earlier “Safe Loan 2%” scheme, which, despite high demand, caused sharp price increases in many cities. “Housing Start” will therefore include strict income and price caps.
In addition to supporting buyers, the government plans to scale up social housing. More funding will go to public housing associations (TBS) and Social Housing Initiatives (SIM), while municipalities will get help to build more affordable rental units—especially for people lacking creditworthiness.
The government also intends to audit state-owned land and hand it over to local governments or social developers to increase building land supply and reduce home prices. Urban planning reforms are also on the way, including streamlining procedures and digitizing the construction process.
Responding to rising rents and weak tenant protections, the government is considering legal reforms to stabilize the rental market. Proposals include promoting institutional leasing, supporting rental-focused foundations and housing cooperatives, and regulating deposit and lease agreement rules. “The key to solving Poland’s housing problem is the development of the rental market—preferably institutional or social rental—which levels the playing field for families without credit capacity,” said Agnieszka Dziemianowicz-Bąk from the Left party.
The Ministry of Family, Labor and Social Policy wants to move away from flashy but ineffective projects like “Mieszkanie Plus,” focusing instead on data-driven policies based on the building lifecycle, social needs, and market conditions.
While many specifics are still in development, the government claims that tangible results will be seen as early as the second half of the year.