KfW and Federal Housing Ministry Support 50,000 New Homes

Frankfurt, September 30, 2026 – KfW and the Federal Ministry for Housing, Urban Development and Construction have supported the construction of 50,000 new housing units since the temporary resumption of the Efficiency House 55 (EH55) promotion in December 2025.

The funding initiative aims to reduce the backlog of construction-ready residential projects and stimulate new housing development. The EH55 support is provided within KfW’s “Climate-friendly Construction” program and is available for new buildings that meet the EH55 standard and utilize 100% renewable energy for heating.

By enabling construction-ready projects to move into implementation more quickly, the program is designed to accelerate the delivery of new housing while promoting energy efficiency and lower long-term ancillary housing costs. Melanie Kehr, Member of the Executive Board of KfW, stated that the program provides an effective investment stimulus and helps bring construction-ready projects to fruition.

The promotion is open to private, commercial, and municipal developers. Private and commercial developers can apply for KfW loans with federal support for interest rate reductions. Municipalities can receive grants. The temporary EH55 promotion will remain open until the allocated federal budget funds for interest rate reductions are fully utilized. The program will end no later than the end of the year.

The renewed funding stage was introduced in December 2025 as a limited measure specifically aimed at accelerating delayed or construction-ready housing projects. By linking support to the EH55 standard and renewable heat generation, the program combines housing construction objectives with energy efficiency and climate requirements.