Germany’s Housing Construction Approvals Drop Nearly 20% in October

The sharp decline in building permits highlights a housing crisis driven by high costs and rising interest rates.

Germany approved the construction of 18,800 housing units in October 2024, marking an 18% decrease compared to October 2023.
From January to October 2024, a total of 175,800 housing units were approved, nearly 20% fewer than the same period last year.
The number of approved single-family homes fell by 23.6%, while approvals for multi-family homes dropped by over 22%.
The government’s target of 400,000 new housing units for 2024 is unlikely to be met, reflecting ongoing challenges in the sector.
Industry experts cite high construction costs, increased interest rates, and regulatory hurdles as key factors behind the downturn.