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Housing shortage projected to worsen

Housing shortage projected to worsen

Episode Info

Show: Your Luxembourg News
Broadcasted: 07:30
  on 17th March 2026

 

About this Episode


The housing shortage is projected to worsen without significant reforms, as the Fondation Idea think tank reports that the country requires 6,000 new homes annually but has lagged in issuing building permits. The think tank, coinciding with audits of the university’s governance, criticized existing measures like a tax on unused land and noted that public developers have a minimal impact on housing supply, producing only about 6% of needed homes. The government acknowledges challenges in current housing mechanisms and is exploring reforms while emphasizing cooperation with municipalities. Proposed changes include allowing more living space in commercial areas and offering interest-free loans for housing purchases, aiming to enhance the overall housing market.

In response to safety concerns for drivers in public transport, Labour Minister Yuriko Backes has announced an initiative to enhance security measures. Following a parliamentary inquiry, it was confirmed that protection cabins for bus drivers have increased significantly, with 53% of buses now equipped compared to 22% in 2022. The government plans to ensure that these cabins become standard in all buses. Additionally, training programs for drivers focus on conflict management and self-defense, aiming to equip staff with skills to handle aggressive situations safely. The ministry is also exploring the deployment of security teams on bus routes and is preparing a new law to enhance safety and surveillance in public transport.

Fuel prices are set to rise again due to increased global costs linked to the ongoing conflict in the Middle East. The recent surge in prices follows military actions between the U.S., Israel, and Iran, which have impacted oil supply routes through the Strait of Hormuz. Despite the rising costs, Luxembourg’s Energy Minister Lex Delles has urged residents not to panic, noting that the situation differs significantly from the turmoil experienced after the start of the Ukraine war in 2022.

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