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Housing Construction Declines to 15-Year Low
Germany is facing a persistent housing shortage despite a steep decline in the number of newly completed homes. According to the Ifo Institute, the volume of new housing completions is expected to drop further to just 185,000 units in 2026, the lowest level since 2012. In 2025, only around 207,000 new homes were finished, marking a significant slump compared with earlier years. This trend highlights a structural crisis in German housing construction, with recovery remaining slow and uncertain [Source 1].
Factors Behind the Construction Slowdown and Future Outlook
The slow recovery in housing supply partly results from longer intervals between building permits and project completions. This extended timeline, coupled with fewer projects breaking ground, limits the ability of the market to respond to acute demand pressures. Projections indicate that by 2028, housing completions might rise modestly to about 210,000 new units, still far short of the demand. The research organization Euroconstruct forecasts approximately 1.57 million new housing units completed in total by 2028, but this moderate growth may struggle to alleviate the existing shortage [Source 1].
Implications for Expats and International Residents
For expats, international students, and foreign workers in Germany, the housing shortage and declining construction rates mean intensified competition for affordable accommodation. Rent levels are likely to remain high or increase, affecting living costs directly. Those planning to move to Germany should start housing searches early, consider shared housing options, and stay informed about local housing regulations and tenant rights to navigate the tight market effectively. Additionally, delays in housing availability could impact relocation timelines and require contingency planning [Source 1].
The ongoing construction bottlenecks underline the challenges facing both residents and policymakers in securing adequate living space amidst demographic and economic pressures. For updated news and detailed analysis, readers may follow the full report at Tagesschau [Source 1].
