The construction boom and mini houses: ‘If the local authorities want it, we are facing a tiny house boom.’
At the end of last year, the German government decided to launch the so-called ‘Bauturbo’ initiative. This is intended to speed up construction. But hardly anyone knows that building mini houses is now also much easier, as Johannes Laible explains.
Is there going to be a boom in tiny house construction? At least the course has been set for this. In October 2025, the federal government, led by Federal Minister of Construction Verena Hubertz, approved the so-called Bauturbo (construction turbo).
In short, the construction turbo describes a special provision in the Building Code that aims to simplify construction and thus create more living space by means of fewer regulations and faster approval procedures. Development plans are to be more flexible, and municipalities are to have more opportunities to approve construction projects.
Special regulation applies until 2030
Minister Hubertz is quoted on her Ministry of Construction website as saying: "With the construction turbo, we have a new and bold instrument that will move our country forward. It is an experimental clause and an opportunity for our cities and municipalities. Now it's up to the city councils, building departments and local authorities. They can apply the Bau-Turbos and build wherever possible. They can redensify, add storeys, expand and repurpose. It's a piece of pragmatic progress that many want for our country. We, as the Federal Ministry of Construction, will support local authorities as best we can in applying the Bau-Turbos."
The construction turbo came into force on 30 October 2025 and will remain in effect until 31 December 2030. The traffic light coalition already wanted to get the construction turbo off the ground. However, the end of the government constellation got in the way of this plan.
Mini houses are not explicitly mentioned in the special regulation. Johannes Laible, publisher of the magazine ‘Kleiner Wohnen’ (Small Living), among others, sees the construction boom as a real opportunity for tiny houses and the like, as he told NEW HOUSING: "There are areas within the scope of the legislative amendment that affect small buildings. This mainly concerns building in the second row, for example in the gardens of detached houses. However, the change also affects additions to normal buildings, as well as garages. This in particular has been discussed repeatedly. Small buildings could be placed on garages in larger residential projects. This was not possible until now."
The will of the municipality is decisive
But this is where the construction boom comes in, Laible continues: "In future, a municipality can allow extensions, for example on garages, if it wants to. The same applies to second-row construction. Until now, municipalities often said that their hands were tied, that they could not allow this because the development plan did not permit it. However, it is important to note that the municipality can still say no.‘
From discussions at NEW HOUSING, the Tiny House Association, of which Laible is a member, also knows that many projects have failed so far due to overly rigid development plans: ’Many people told us that they would like to vacate their detached house for their children. And at the same time, they want to build a tiny house for themselves in the garden." Laible also sees this as an opportunity for society, as it could bring generations closer together again.
‘The door is open for a boom’
So will we see significantly more tiny houses in our towns and villages in the future? Laible: ‘If the local authorities want it, then we are in for a tiny house boom. The construction boom also regulates niche developments where it used to be difficult. Once we see the first projects where this works, many more could follow.’
The Federal Ministry of Construction also emphasises the role and willingness of local authorities, as a spokesperson told NEW HOUSING in response to an enquiry: "The construction turbo and planning law in general do not distinguish between tiny houses built on solid ground and other residential uses. The extent to which tiny houses benefit from the construction turbo will therefore depend in particular on whether local authorities grant the necessary approval for the respective project. According to Section 36a (1) sentence 3 of the BauGB, the local authority will grant its approval if the project is in line with its ideas on urban development and planning."
State building regulations decisive
State building regulations are also decisive in determining whether tiny houses may be built. ‘The state building regulations govern whether or not the erection of tiny houses requires a permit. The regulations vary from state to state. In most cases, a building permit (simplified procedure) will be required for tiny houses. In some cases, depending on the state, tiny houses may also fall under the category of construction projects that do not require a permit or are exempt from approval,’ the ministry continues.
Whether the requirements for the permissibility of structures are met must be assessed by the local authority and, if necessary, the state supervisory authorities, based on local conditions. Tiny houses fall into building class 1 (small buildings) with the lowest requirements.
With its newly created Business Day, NEW HOUSING 2026 offers the ideal opportunity for municipal representatives. On the Friday of the trade fair, experts will discuss all the important issues surrounding tiny house projects that are relevant to municipalities.
INFO: IMPLEMENTATION LAB
The Bau-Turbo implementation lab supports local authorities in making targeted and effective use of the new scope provided by Section 246e of the German Building Code (BauGB). The aim is to create affordable housing more quickly and in an environmentally and socially responsible manner.
The focus is on joint learning and testing practical solutions and direct feedback into policy and legislation. To this end, the implementation lab connects local authorities that use (or want to use) Bau-Turbo to form a collaborative learning and exchange platform: open, courageous, solution-oriented.
All local authorities facing the task of creating sustainable and affordable housing are invited to participate, regardless of whether concrete projects are already underway or initial ideas are just emerging. Each local authority brings valuable experience that will help advance the construction turbo.
Text: Ministry of Construction
