Overview

• 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.