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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.
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