WIESBADEN (dpa-AFX) - A glimmer of hope for Germany's housing construction sector, which has been facing a crisis for years: After three consecutive years of declining figures, authorities approved more new homes again in 2025. The Federal Statistical Office counted 238,500 units, an increase of 10.8 percent compared to the previous year, which had marked the lowest level since 2010. For the first time since 2021, the number of permits for new construction and renovation of residential space has risen again.
Federal Building Minister Verena Hubertz (SPD) sees this as evidence "that the turnaround in housing construction has begun." She emphasized that the second half of the year, with an increase of 17.8 percent, underlines "that many things in the housing sector are moving in the right direction." The minister added, "The mood in the industry has improved, and investments are also rising. This is also the result of clear political decisions."
Tight supply in many cities
However, it will take time for the approved projects to be implemented. According to estimates from the real estate industry, 215,000 apartments will be completed this year. That would be about 20,000 fewer than in 2025 and overall, significantly less than needed.
Affordable housing has been scarce for years, especially in metropolitan areas. In cities such as Munich, Frankfurt, or Berlin, but also in other regions, housing costs are a significant burden for many people.
When will the "building turbo" ignite?
The declared goal of the conservative-social democrat federal government is to create more new housing. The previous SPD-led government had promised 400,000 new apartments per year in Germany, but this target was never achieved. In 2024, 251,900 apartments were completed nationwide, the lowest number since 2015.
The current government aims to boost sluggish housing construction with a "building turbo" through faster approvals. Experts consider this the right step. Construction Minister Hubertz expressed confidence that the government, with this and other measures, will ensure "that the positive trend will continue in 2026." However, most construction companies do not expect noticeable effects from the "building turbo" until 2027 and 2028.
According to preliminary figures from statisticians in Wiesbaden, 194,200 apartments were approved last year in newly constructed residential buildings, an increase of 13.2 percent compared to 2024. While approvals for single-family homes rose by 17.2 percent to 44,500, the number of new two-family homes remained almost unchanged at 12,600. In new multi-family buildings, the most common type, authorities approved 128,100 apartments, 12.1 percent more than a year earlier./ben/DP/mis
