Overview
- The Bau‑Monitor 2026, released Wednesday, estimates a nationwide shortfall of about 1.35 million apartments at the end of 2025.
- The report says completions fell sharply between 2023 and 2025, with about 84,600 fewer homes finished in 2025 than in 2023.
- Pestel‑Institut modeling links the construction slump to roughly €26.9 billion in lost sector revenue, a 0.6 percentage‑point drag on GDP and about €7 billion less in tax receipts.
- Regional data show uneven recovery: Frankfurt recorded 8.2% fewer permits in the first half of 2026 while Hesse logged a 3.7% permit rise to 8,025 units that still falls far short of the estimated annual need of over 26,000 homes.
- Industry groups call for predictable, continuous federal funding and faster regulatory simplification such as the proposed Gebäudetyp E, they reject expropriation and warn that planned subsidy cuts would deepen the shortfall and hamper labor market mobility.