Overview

• Presented at Expo Real, the Messe München–commissioned analysis excludes apartments vacant for over a year and counts a shortfall of about 1.2 million dwellings in West Germany.
• Pestel’s economists say frozen housing markets now hinder hiring and worker mobility, turning the shortage into a brake on national growth.
• Residential building has been stalled for roughly three years, with housing starts down about 85% from late 2022 to mid‑2025 as higher financing costs, rising construction prices and bureaucracy bite.
• Building minister Verena Hubertz says a permitting “Bau‑Turbo” is slated for Bundesrat approval next week and highlights €23.5 billion for social housing plus €11 billion from a special fund.
• Construction firms and analysts question the measures’ impact and urge broad, untied subsidies and tax relief, while shortages remain most acute in major cities such as Munich, Berlin, Frankfurt and Hamburg.