German Housing Permits Show Second Month of Growth, But Challenges Persist

While housing permits in Germany increased for single-family and multi-family homes, high interest rates and rising costs continue to strain the sector.

Housing construction permits in Germany rose by 6.9% in January 2025, following a 5% increase in December 2024, marking two consecutive months of growth.
Single-family home permits saw a significant increase of 21.7% in January 2025, while multi-family home permits grew by 5.8%.
Permits for two-family homes declined by 10%, highlighting uneven recovery across housing types.
The sector remains under pressure from high interest rates and elevated construction costs, which have worsened due to a planned government financial package raising borrowing costs.
Despite recent growth, housing permits are recovering from historically low levels, with 2024 marking the lowest annual total since 2010 after a 17% decline.