Germany Faces Record Housing Shortages Amid Construction Decline

High costs, regulatory hurdles, and insufficient social housing exacerbate the crisis, with 550,000 homes urgently needed.

The number of social housing units in Germany has dropped to just over one million, far below the estimated need of two million by 2030.
A recent study highlights a nationwide housing shortage of 550,000 units, with urban centers like Berlin facing acute deficits in affordable housing.
High construction costs, stringent building standards, and expiring social housing price controls are cited as major barriers to addressing the crisis.
Despite increased government funding, only 23,000 new social housing units were built in 2023, falling well short of the annual target of 100,000.
Experts call for reduced building regulations, tax incentives, and a dedicated investment fund to accelerate affordable housing development.