BERLIN, May 26 (Xinhua) -- German Chancellor Angela Merkel has said that 1.5 million new apartments and houses will be built in four years in a bid to provide housing for middle and lower income people.

In her latest weekly podcast released on Saturday, Merkel said affordable housing for middle and lower income is one of the major issues of the time for many people. The German government is responding to this with a "housing offensive."

More than 6 billion euros (7 billion U.S. dollars) will be used for housing projects, said Merkel. It would include measures to strengthen tenants' rights and to assist landlords when modernizing their rental properties.

Merkel added that the German federal government will inject 2 billion euros into social welfare housing projects run by the country's 16 federal states.

The situation in Germany's metropolitan hubs would "hopefully relax somewhat," she predicted.

Developers of new rental housing catering for the "middle segment" -- defined as being about 10 euros per rented square meter per month -- would also get special tax dispensation.

Normal affordable housing should also be promoted, according to Merkel. Families should not have to choose between home ownership or children.

The situation of the tenants should also be improved, said Merkel. In addition, the rent levels should be standardized and made more transparent.

All these measures should create more living space and strengthen the rights of tenants, without putting the landlords in a difficult position, said Merkel.