Germany Faces Urgent Need for 320,000 New Housing Units Annually
A government report highlights a growing housing shortfall, with urban centers struggling to meet demand and affordability worsening for low- and middle-income households.
- 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.
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