Overview
- At the Housing Construction Day in Berlin on Thursday, a broad alliance of industry groups, unions and the tenants’ association said completions will likely drop below 200,000 homes in 2026, down from about 306,000 in 2020 and roughly 250,000 in 2024.
- The government is drafting a low‑cost “Building Type E” code to strip non‑essential features and cut costs, with pilots and Schleswig‑Holstein data pointing to savings that lower average build costs from about €4,650 per square meter toward €3,500, while environmental groups press for renovation, conversion and better use of existing stock.
- Industry leaders seek fast relief on financing through a KfW program that caps construction interest near 1 percent, faster permits and more serial building, along with funding for about 100,000 social homes each year.
- Sector voices link the Iran conflict to higher energy and material prices and rising bond yields, which push up construction loan rates, with some suppliers reporting 6 to 10 percent price jumps and economists warning of spillovers to an industry that generates about €530 billion in value each year.
- Pressure on renters remains severe as about 9.9 million people live in overcrowded homes and nearly one in five children lack enough space, while asking rents across 80 large cities are up about 13.7 percent since 2022 and Berlin data show sharp gaps between pricey inner districts and cheaper outer areas.