Overview

• Germany constructed 62,500 social housing units in 2024, a 17% increase from 2023, but far below the annual target of 100,000 units set by the federal government.
• The overall housing market remains strained, with only 216,000 new housing permits issued in 2024, marking the lowest level since 2010.
• Experts emphasize that increased housing construction could alleviate the housing crisis while providing a significant economic boost, potentially increasing GDP by 0.5% through 50,000 additional affordable units.
• High rents continue to burden low-income households, with some families spending up to 60% of their net income on housing, exacerbating financial insecurity.
• Critics highlight the failure of both the current and prior administrations to address the housing crisis effectively, warning of potential political instability if the issue remains unresolved.