Overview

• 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.