Germany Faces Housing Crisis as Social Housing Goals Fall Short

Bauministerin Klara Geywitz defends her record amidst mounting criticism over unmet construction targets and rising rents.

Germany's housing shortage persists, with 550,000 social housing units currently needed, according to a Pestel-Institut study.
The government fell significantly short of its 2021 pledge to build 400,000 homes annually, achieving just 300,000 in 2023, including only 23,000 social housing units.
Rising rents exacerbate the crisis, with average increases of 4.7% nationwide and 8.5% in Berlin over the past year.
Bauministerin Klara Geywitz attributes challenges to the Ukraine war, citing rising construction costs and interest rates, but predicts improvements starting in 2026.
Efforts to simplify building regulations and expand social housing funding have faced delays, limiting the ministry's impact during this legislative period.