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New Study Finds Germany Faces Record Housing Shortfall of 1.4 Million

The report points to high financing and construction costs that leave homebuilding far below needs.

Overview

  • Published as the Sozialer Wohn-Monitor 2026, the Pestel-Institut analysis—commissioned by the Bündnis Soziales Wohnen—calculates a nationwide deficit at end-2024 of about 1.4 million apartments concentrated in lower-cost and social housing.
  • Completions fell to roughly 220,000 last year and permitting signals similar output in the near term, far under the pace required to close the gap by 2030.
  • Regional shortages are most acute in North Rhine-Westphalia (around 376,000) and Bavaria (about 233,000), with further deficits in Baden-Württemberg and the city-states including Berlin, Hamburg and Bremen.
  • Advocacy groups call for a Bund–Länder pact and a rapid expansion of subsidized homes to at least two million, warning that staggered federal payouts force states to pre-finance projects and slow delivery.
  • Younger people, seniors and people with disabilities are most affected, with missed apprenticeships, rising forced moves in old age and evidence that roughly half of renter households now qualify for a social-housing permit.