Affordable housing is scarce in many German cities, and political pressure for action is correspondingly high. With the modernization of urban planning and spatial planning law, the German government is planning initial measures to counteract this: The reform aims to accelerate urgently needed housing construction and digitize planning processes – an important project that is fundamentally supported by the commercial sector. After all, the availability of affordable housing is a key factor in recruiting employees. At the same time, however, the government is also setting new planning priorities that are likely to have a massive impact on the long-term development of cities and regions.
Do not pit housing against commercial areas
Critical assessment must be given to the planned classification of housing construction as "overriding public interest." It significantly shifts planning considerations at the expense of commercial areas. In many cities, however, not only housing but also economic development areas are in short supply. If these are displaced, this endangers value creation, employment, workforce security, and the economic resilience of entire regions. Regions need space both for housing and for working – neither must be played off against the other.
More uncertainty for businesses
For businesses, the draft law increases the already significant planning and investment risks: Binding protection mechanisms for commercial areas are missing as much as clear extended protection for existing businesses. New, undefined legal terms increase legal uncertainty: When it is not clearly defined when an interest prevails, this complicates business planning.
Usage conflicts between housing and working – for example, in noise protection – remain unresolved as long as central regulations such as the "Technical Instructions for Noise Protection" are not modernized simultaneously: The "TA Lärm" specifies permissible noise levels for companies in different types of locations. Stricter limits apply in residential areas than in commercial areas, which often leads to conflicts in the case of new housing construction near existing businesses.
Equal footing instead of displacement
The German Chamber of Commerce and Industry explicitly advocates for faster procedures, digitization, and more housing construction. At the same time, it demands improvements to ensure balanced and economically viable urban and regional development. This includes binding protection of commercial and industrial areas as well as legally anchored extended protection. Clear criteria for decision-making and investment-secure, reliable processes are also needed. Housing and economic interests must be equally considered in construction planning and spatial planning law.
Think holistically about housing
Politics and administration are required to continue developing the reform in a balanced manner. Housing construction should be linked to an active commercial area policy, systematic area monitoring, and practical environmental and noise regulations. Only by thinking together about housing, working, supply, and infrastructure can livable places and a permanently competitive economic location in Germany be created. Attractive, well-connected living spaces secure skilled workers, promote innovation, and strengthen Germany's long-term economic performance.
- Relevant in topic:
- Wirtschafts- und Finanzpolitik
- Key areas:
-
- Bauwirtschaft
- Infrastruktur
Released 01.06.2026
Modified 05.06.2026
Contact
Karoline Preuß
Director Construction and Real Estate Economy
Anne-Kathrin Tögel
Director Department for Urban Development and Land Policy