Overview

• Germany's housing demand is projected at 320,000 new units annually through 2030, but only 294,400 were completed in 2023.
• Urban areas, including Berlin, Munich, and Hamburg, require 60,000 units per year, while rural regions face stagnant or declining demand.
• Soaring construction costs, high interest rates, and a shortage of skilled labor are key obstacles to meeting housing needs.
• The government's €500 billion infrastructure fund excludes allocations for affordable housing, intensifying calls for targeted investment.
• The crisis disproportionately affects low- and middle-income households, with a severe shortage of affordable and social housing options.