Baukindergeld: almost 50,000 applications – primarily in rural areas

Almost 50,000 families have applied for the construction child allowance. This was announced by the Federal Ministry of the Interior, for Building and Community (Federal Ministry of Building) in a press release dated December 18, 2018. According to the ministry, the funding volume at that time was around one billion euro. However, families primarily claimed the construction child allowance for residential property in rural regions. This was reported by the Federal Government in response to a parliamentary question by the FDP parliamentary group.

Who has applied for child construction grant so far?

According to a statement by the Ministry of Building on December 18, exactly 47,741 families with 82,865 children had applied for the funding at that time. Accordingly, a majority of the families submitting applications have one to two children. The KfW banking group already received over 9,500 applications in the first week after the launch of the family homeownership allowance (Baukindergeld) in September 2018. According to the Federal Ministry of Building, almost 3,000 new applications are added every week.

Where are the funding grants accessed particularly often?

Comparing the federal states, North Rhine-Westphalia was the leader in terms of applications submitted with 10,728 applications. Following behind were Baden-Württemberg (6,407) and Lower Saxony (6,039). However, if you take the number of families in the individual federal states and use it to calculate the proportion of those who applied for the child-raising building allowance, the proportion in Baden-Württemberg, for example, could be larger than in NRW.

Does the Baukindergeld work?

„Precisely where housing prices are already the highest, the child housing subsidy is ineffective – in the metropolises.“ With these words, FDP housing policy spokesman Daniel Föst was quoted in a press release by the Second German Television (ZDF) on January 12, 2019. The basis for this assessment was the federal government's response to a minor interpellation by the FDP from December 2018.

A total of 13.88 applications were filed in the three city-states of Berlin, Bremen, and Hamburg. According to ZDF, this is a low figure relative to the population size as well. In Berlin alone, there were a total of 619 applications for the family-building subsidy (Baukindergeld) between September and November 2018. Saarland recorded 622 applications. In contrast, Berlin's population of approximately 4.6 million is more than three times that of Saarland (approx. 995,000).
The number of families is also larger in Berlin: According to the Federal Statistical Office, 462,000 families lived in Berlin in 2017 and only 145,000 in Saarland. In East Germany, the most applications for Baukindergeld were submitted in Saxony (1,755) and Brandenburg (1,535).

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Are the subsidies sufficient per year?

In total, the federal government is providing three billion euros per year for the family housing subsidy for children (Baukindergeld). Since the funding volume had already reached one billion euros in the first three months since the launch of the subsidy, an extrapolation to a full year results in a demand of approximately four billion euros. If the level of applications therefore remains the same, the annual funding will not be sufficient. An increase in funding is not planned at this time.

What actually is the Baukindergeld?

Families with children can apply for the funding after moving into a newly built or purchased house. The application must be submitted within 3 months of moving in. If the household income is below a maximum amount and the application is approved, families will receive 1,200 euros per year per child for ten years.

You can find more information about the application for the Baukindergeld on the KfW website.

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