Overview

• Germany completed only 251,900 housing units in 2024, a 14.4% decline from the prior year and the lowest level since 2015.
• The steepest declines were seen in single-family homes (-22.1%) and two-family homes (-26.2%), with multi-family units also dropping by 13.4%.
• High construction costs and stabilized mortgage rates at around 3.5% have deterred builders and investors from initiating new projects.
• Residential property prices rose 3.6% year-on-year in Q1 2025, while rents climbed over 4%, exacerbating affordability challenges.
• The new government, led by Bauministerin Verena Hubertz, has announced a 'housing-construction turbo' to streamline approvals, promote modern building methods, and allocate more land to address the crisis.