“Housing is a basic human right”
Interview with Jürgen Kastner, Managing Director of Gewog Wohnungsbau- und Wohnungsfürsorgegesellschaft der Stadt Bayreuth mbH
With climate neutrality high on the EU’s agenda and affordable housing growing increasingly scarce, municipal housing companies find themselves navigating a complex landscape shaped by political mandates, economic constraints and environmental responsibilities. For Gewog, the public housing provider in Bayreuth, Germany, this balancing act is part of daily operations. Now in its 75th year, the company is forging ahead with comprehensive renovation strategies, sustainable new construction and a clear, pragmatic voice in the broader political debate on energy, housing and social equity.
European Business: Mr. Kastner, how has Gewog evolved over the decades – and what role does it play today?
Jürgen Kastner: Gewog was founded in April 1949, during Germany’s post-war reconstruction. Housing was the key issue then – just as it is today. As a municipal housing company, our legal mandate is to provide adequate and affordable housing to the broad population of Bayreuth. Historically, we focused on maintaining and modernising our stock. With my appointment as Managing Director in early 2024, and as sole Managing Director since July, we have refined our focus: positioning Gewog to meet the evolving demands of climate policy at local, national and EU levels.
European Business: What does your current property portfolio look like?
Jürgen Kastner: We manage around 4000 housing units – mostly from the 1950s and 1960s. These buildings were not built with climate neutrality in mind. We now face the major challenge of renovating them to meet current standards. The average energy consumption of these buildings is 250 to 300 kWh per m2 per year, but EU targets call for figures around 55. That means massive investment is needed – and the funding is not always sufficient.
European Business: What is your view on current EU climate directives?
Jürgen Kastner: The political goals are important and correct. But the instruments chosen are often too rigid. For example, current frameworks push us almost exclusively toward electrification: heat pumps, photovoltaic systems, smart controls. That sounds good on paper, but in Germany we have long, sunless winters. Without stable, affordable electricity, we’re risking a second rent: energy costs could soon exceed what people pay for housing itself. We need more technological diversity and pragmatic thinking in policymaking – otherwise we risk undermining our own objectives.
European Business: Why do you still avoid subsidies where possible?
Jürgen Kastner: Because the conditions attached to them are increasingly restrictive and often miss the point. Much of the subsidy system is based on so-called energy efficiency classes. But what really matters is a building’s CO2 output – not the label on paper. A smarter funding system would reward actual emissions reductions. For example: if a building emits 20 tons of CO2 per year, you receive 100 EUR per ton. Reduce it to 10 tons, and you receive 200 EUR. That creates incentives that work – and give companies like ours more flexibility in how we achieve our goals.
European Business: In a challenging environment, what values do you rely on most?
Jürgen Kastner: Above all, affordability and responsibility. Housing is not a luxury – it is a basic human right. Our job is to ensure people can not only find a home, but afford to live in it long-term. That requires long-term thinking, financial prudence and a strong ethical compass. We’re also committed to transparency. For example, we now use social media and a tenant newsletter to communicate our work and show the value we create – not for marketing, but to build trust and involvement.
European Business: How are you responding to the skilled labor shortage?
Jürgen Kastner: We operate our own in-house trades department with 15 skilled workers – electricians, plumbers, carpenters – which gives us enormous flexibility. When a heating system fails in the middle of winter, we don’t want to wait two weeks for an external contractor. In total, we employ 54 people across administration, technical services, maintenance and accounting. It’s a lean but effective structure.
European Business: What would you like to see from policymakers going forward?
Jürgen Kastner: Stability and realism. In 2025 alone, the national development bank KfW changed its financing conditions over 30 times. That makes long-term planning almost impossible. We need policies that reward actual outcomes – especially in emissions – and allow developers to choose how to meet those goals. Above all, we must not forget that housing is a pillar of social stability. Everyone should have access to a safe, dignified and affordable home. That’s not a privilege – it’s a public responsibility.
European Business: Looking ahead – what gives you confidence despite the challenges?
Jürgen Kastner: Our long-standing experience, a clear social mission and the knowledge that housing is more than just a market – it’s the foundation of a stable society. That gives us strength and direction, even in turbulent times.