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In 2018, Baukindergeld was introduced by the Federal Government to promote home ownership for families with children. The effects of the subsidy programme have now been evaluated as part of a study for the years 2018 to 2020. The evaluation focused on the question of whether the subsidy achieves the formulated goals of the programme. Baukindergeld aims at facilitating the formation of home ownership for young families with children.
In view of rising rents and real estate prices, the affordability of housing has increasingly come into focus in recent years. Besides the construction of new rental housing, strengthening home ownership in general and for households with children in particular, is a priority of the Federal Government's housing offensive for creating additional affordable housing. Through its Baukindergeld subsidy, the Federal Government has been promoting the first-time acquisition of owner-occupied residential property for families with children since September 2018. Over a period of ten years, families with at least one child under the age of 18 receive 1,200 euros per year and child. Support is provided to families with a single child and a taxable household income of up to 90,000 euros per year and 15,000 euros for each additional child. The Federal Government provided funds amounting to 9.9 billion euros for the investment subsidies.
The present study evaluates Baukindergeld for the period from 2018 to August 2020. The evaluation focuses on the question of whether the subsidy successfully achieves the formulated goal of supporting home ownership for families with children. Beyond this central question, the effect of the subsidy on the housing markets is of interest: can Baukindergeld increase the supply of housing, especially in growing cities and regions with housing shortages? Does Baukindergeld increase the attractiveness of housing in rural regions? Does Baukindergeld stimulate the housing stock in structurally weak regions and revitalise their local centres?
The contractor of the project was: IWU Institut Wohnen und Umwelt GmbH, Darmstadt.
Iris Ammann
Federal Institute for Research on Building, Urban Affairs and Spatial Development
Division WB 1 „General Housing and Property Markets“
Phone: +49 228 99401-1576
Email:
iris.ammann@bbr.bund.de