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Germany’s Social Housing Reaches Record Low as Government Faces Mounting Criticism

The number of social housing units dropped to 1.05 million by the end of 2024, with critics calling for increased funding and policy reforms to address the crisis.

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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.