Overview

• Germany’s social housing stock fell to 1.05 million units in 2024, a decline of 26,000 units from the previous year, marking a historic low since reunification.
• The government failed to meet its annual target of 100,000 new social housing units, despite allocating 3.5 billion Euros for construction in 2025.
• Expiration of social binding agreements, allowing subsidized housing to transition to market rates, continues to erode the stock of affordable units.
• New Construction Minister Verena Hubertz announced plans to extend rent controls by four years and introduced a 'housing construction turbo' initiative to boost affordable housing.
• Critics, including Caren Lay of Die Linke, argue that 20 billion Euros annually are needed to reverse the trend and address the growing demand for affordable housing.