Germany Faces Persistent Housing Shortfall Despite Increased Social Housing Efforts

The federal government has missed its ambitious housing targets, with experts warning of economic and social repercussions from the ongoing crisis.

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.