BERLIN (dpa-AFX): The number of social housing units in Germany continued to decline in 2025, according to federal government data. While 27,283 new rental apartments received subsidies, a 2% increase over 2024, the Ministry of Housing reported in response to an inquiry by Left Party MP Caren Lay. An additional 4,701 new dormitory spaces for students and apprentices were created. However, during the same period, 57,621 units saw their rent-control status expire.

Despite countermeasures such as extending occupancy restrictions, the net result remained negative: by the end of 2025, there were 20,000 fewer social housing units than a year earlier. At the end of 2024, approximately 1.05m such apartments were registered nationwide. These units are built or modernized with state subsidies and must offer affordable rents for up to 30 years, after which these requirements lapse.

Significant Gap in North Rhine-Westphalia

Housing Minister Verena Hubertz (SPD) aims to reverse this downward trend, pledging $23.5bn in federal funding through 2029. Nevertheless, new construction is currently failing to offset the loss of older social housing in many regions.

The deficit was particularly pronounced in North Rhine-Westphalia: according to the Federal Ministry, 6,773 social housing units and 1,110 dormitory spaces were built there last year, but 26,421 units exited the program, resulting in a net loss of 18,538. Berlin saw a decline of 2,957 units, while Bavaria lost 2,790. Some states did manage a net increase, however. Baden-Wuerttemberg performed best with 3,046 additional units, followed by Lower Saxony with a plus of 1,240 and Saxony with 944.

'A Gift to Investors'

Caren Lay, the Left Party's housing expert, criticized the fact that while there is currently a shortage of roughly one million social housing units, the downward spiral continues. The billions announced by Hubertz are insufficient, she argued: "These funds are needed annually, especially now that private residential construction is stalling," the member of parliament stated.

She expressed fundamental criticism of the subsidy system due to the temporary nature of rent controls. "This is a gift to investors, but it is not socially sustainable," Lay said. "To keep rents permanently social and affordable, we need a genuine new non-profit housing sector and a rent cap."

The German Tenants' Association also demanded a policy of "once social housing, always social housing." At the same time, association president Melanie Weber-Moritz warned against cuts to housing benefits, which are currently being discussed within the CDU-SPD coalition due to budgetary constraints. The Social Association of Germany stated: "These figures show that efforts in social housing construction are simply not ambitious enough."/vsr/DP/stw