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Germany’s New-Home Completions Seen Falling to 235,000 in 2025, Deepening Shortage

The building minister pledges to cut bureaucracy to speed construction.

Overview

  • Experts at the IW say Germany needs roughly 372,000 new dwellings per year, far above the 2025 total now expected.
  • Completions have slid from 294,000 in 2023 to 251,900 last year, with a further drop projected for this year.
  • A Pestel study reports Berlin faces a deficit of about 56,000 apartments and counts roughly 11,760 units long vacant.
  • Pestel’s chief economist notes only 6,560 building permits in Berlin in the first half of the year and urges federal loans capped at two percent to revive building.
  • BDB president Katharina Metzger criticizes the lack of progress and calls on Chancellor Merz to make housing a top priority, while the government signals looser rules and more digitization to cut costs.