Germany Faces Urgent Need for 320,000 New Homes Annually, Study Finds

A government-commissioned report highlights severe housing shortages, particularly in urban centers, as construction falls short of demand.

A new study by the BBSR estimates Germany needs 320,000 new housing units annually through 2030, with urban areas requiring the majority.
In 2023, only 294,400 housing units were built, far below the target of 400,000 set by the federal government.
The seven largest cities, including Berlin and Munich, account for 20% of the total demand, needing 60,000 new units per year.
Rising construction costs, higher interest rates, and reduced building permits have significantly hindered housing development.
Roughly two million housing units remain vacant, but many are either uninhabitable or located in low-demand regions.