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Germany’s Housing Permits Tick Up, Multi-Family Approvals Stay Flat

The modest rise is not seen as a turning point for the housing shortage.

Overview

  • Statistisches Bundesamt reports about 110,000 dwellings approved in the first half of 2025, up 2.9% year over year, driven by single-family houses (+14.1% to 21,300) as multi-family units held at 57,300 (+0.1%).
  • The government's “Bau-Turbo” to let municipalities streamline approvals by deviating from local plans is slated for a Bundestag vote in autumn, with experts expecting only limited near-term impact.
  • Delivery remains slow, with just 251,900 homes completed in 2024 and an average 26-month gap between permit and completion.
  • Industry and housing associations reject talk of a turnaround, pointing to stagnant multi-family permits, high financing and construction costs, and scarce, expensive urban land in big cities.
  • Euroconstruct and the Ifo Institute forecast completions of roughly 205,000 in 2025 and 185,000 in 2026, with recovery not expected before 2027.