Housing Construction Approvals in Germany Drop Nearly 19% in 2024

High costs, rising interest rates, and regulatory challenges contribute to a significant decline in residential building permits.

The number of residential building permits in Germany fell by 18.9% from January to November 2024 compared to the same period in 2023, totaling 193,700 approvals.
Approvals for new single-family homes dropped 22.1% to 34,800, while permits for two-family homes fell 12.7% to 11,700.
The largest decline was observed in multi-family housing, with approvals decreasing by 22.4% to 101,200 units during the same period.
Rising construction costs, high interest rates, and bureaucratic hurdles are cited as key factors behind the downturn, exacerbating the housing market crisis.
The construction sector and housing advocates are urging the new German government to prioritize housing policies, simplify regulations, and provide targeted funding to address the worsening housing shortage.