Overview

• The Verband der bayerischen Wohnungsunternehmen (VdW Bayern) forecasts a drop to just 3,000 affordable housing completions in 2025, down from 3,556 in 2024.
• Bavaria's 2025 housing subsidy freeze has left over 90 social housing projects and nearly 5,000 units financially stranded, with no funding clarity for 2026.
• Construction costs in the social housing sector have risen 44% since 2019, more than double the general inflation rate, exacerbating financial pressures on non-profit builders.
• Private developers' increased participation in subsidized housing has strained funding pools, further limiting resources for non-profit housing cooperatives.
• The VdW Bayern is calling for an €800 million emergency relief package, while Bavarian Housing Minister Christian Bernreiter defends prior investments and promises to honor existing project approvals.