German Housing Construction Hits New Low as Permits Plunge

The number of housing permits in Germany fell by over 23% in September, exacerbating the ongoing housing crisis.

In September 2024, only 15,300 housing units were approved, marking a 23.1% drop compared to the previous year.
From January to September 2024, Germany saw a total of 157,200 housing permits, a nearly 20% decline from the same period in 2023.
High material and financing costs, partly due to geopolitical tensions and energy supply changes, are major factors in the construction slowdown.
The government's goal of 400,000 new homes annually is far from being met, with current approvals suggesting only about 200,000 new units per year.
Experts anticipate a potential recovery in the housing market by late 2025, contingent on expected interest rate cuts by the European Central Bank.