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Housing Construction Declines to 15-Year Low
Germany’s housing construction continues to decline, with the number of newly completed homes expected to fall to a 15-year low in 2026. The ifo Institute projects that only around 185,000 new residential units will be finished in 2026, a significant drop given the ongoing shortage of housing across the country. This figure marks the lowest volume of new housing completions since 2012, a trend consistent with data from 2025 when just about 207,000 homes were completed – the smallest output in over a decade [Source 1].
Slow Recovery and Future Outlook
The ifo Institute attributes the slow recovery in residential building partly to longer gaps between construction permits being issued and actual project completion. The forecast sees a marginal improvement by 2028, with approximately 210,000 new residential units anticipated. However, this recovery is gradual, and overall development is still well below historical levels. Another forecast by Euroconstruct anticipates that between now and 2028, around 1.57 million housing units will be completed, though this still may not suffice to meet demand [Source 1].
Implications for Expats and International Residents in Germany
For expats, international students, and foreign workers living in Germany, the falling housing construction numbers could mean increased difficulty in finding affordable accommodation. The sustained housing shortage is likely to keep rent prices high and availability low, particularly in major urban centers where many internationals reside. It is advisable for expats to plan accommodation searches well in advance and consider alternative housing options such as shared apartments or residences farther from city centers. Legal rights regarding rental agreements remain unchanged, but understanding tenant protections and lease obligations is essential amidst a tight market [Source 1].
Given these trends, foreign residents should also stay informed about local housing policies and registration requirements. Those planning to move to Germany or relocate within the country may face longer waiting periods for new housing and should budget accordingly. Consulting housing offices and expat advisory services early can help navigate obstacles related to housing scarcity and rental market competition.
Full details on the housing situation in Germany can be found via the original report at Tagesschau.de [Source 1].
