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German draft aims to cut housing costs with Type E buildings

Monday 26th October 2026 on 05:30 in Bavaria

Bavaria, construction, housing

Germany’s government has presented a draft law intended to make housing cheaper by allowing some building standards to be relaxed, BR reports. The Type E approach could reduce construction costs by about 10 percent, while retaining safety and health requirements.

The proposed rules would let builders depart from standards related to comfort and fittings. In a nearly completed housing cooperative project in Munich’s Schwabing district, for example, sound insulation is lower than it could be, and there are fewer electrical sockets in each room than under usual standards.

Architect Rainer Hofmann, who is also on the board of the cooperative Das große kleine Haus, said the building reuses door frames from an old office and uses recycled steel for its balconies. It is one of 19 pilot projects for Type E buildings in Munich.

The project’s rents are expected to range from 12.20 to 13.50 euros per square metre. BR reports that the savings from lower construction costs are reflected in the rents, which are relatively affordable compared with other rents in Munich.

Justice Minister Stefanie Hubig had announced the draft in early July, saying it would be presented that month. The government has now released it for discussion. The next step is coordination within the government.

Source 
(via BR)