Expansion of Income Limits: More Families Qualify for Building Subsidies

Income limit increases
More families receive building subsidies

October 14, 2023, 7:14 a.m

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The “Home Ownership for Families” program provides low-interest loans for climate-friendly new buildings. The circle of those eligible is now expanding to include significantly higher incomes than before.

From Monday, the “Home Ownership for Families” funding program can also be used by families with at least one child and a taxable annual income of up to 90,000 euros – previously the income limit was 60,000 euros. “We urgently need more affordable housing in Germany for families, for students, for people who are fleeing wars, we need more apartments suitable for older people,” said Federal Construction Minister Klara Geywitz to the Web.de portal.

For each child, the income limit increases by 10,000 euros. This means that “families with two children and with an annual taxable household income of up to 100,000 euros” can also take advantage of the funding, said Geywitz.

Eligible families can register through the program reduced interest loan for the new construction or first purchase of a climate-friendly house or apartment. In 2023, the federal government will provide up to 350 million euros for this. Only properties with a low CO2 footprint over the entire life cycle are eligible for funding.

High requirements for climate friendliness

Ina Scharrenbach, Home Affairs and Construction Minister of North Rhine-Westphalia, welcomed the increase in the income limit in principle. “She’s coming late, but she’s coming,” said the CDU politician. However, she criticized the high requirements regarding the climate friendliness of the subsidized properties as “unrealistic”. From Scharrenbach’s point of view, it would also be better if families could also apply for the loans when purchasing an existing property. “The latter would have been a sensible funding option from a sustainability perspective,” added Scharrenbach.

In the fight against the housing shortage in Germany, the federal government agreed on a package of measures in September. In addition to the support program for families, this also includes a waiver of the originally planned tightening of energy standards for new buildings.