Germany Faces Deepening Housing Crisis as Construction Slumps
With housing demand surging, experts warn of worsening shortages and rising rents as new construction falls far below targets.
- Germany's housing construction is projected to drop to just 230,000 units in 2025, far short of the government's annual target of 400,000 new homes.
- High construction costs, regulatory hurdles, and economic stagnation are cited as key factors behind the declining housing output.
- Experts predict a continued rise in rents, especially in major cities, as the gap between housing demand and supply widens further.
- The 'Immobilienweisen' spring report calls for urgent reforms, including streamlined permitting processes, cost reductions, and increased investment incentives.
- Berlin, facing severe housing shortages, highlights the national struggle, with only half of its estimated housing needs being met annually.