Many people are desperately looking for affordable housing, especially in cities. But the new construction has been stalling for months.
The lull in the construction of new apartments in Germany continues despite high demand for living space. Both in March 2024 and in the first quarter as a whole, the number of building permits was significantly below the previous year’s figures, as the Federal Statistical Office announced.
According to Wiesbaden statisticians, the construction of 14,700 apartments was approved in March. That was a good quarter (27.3 percent) less than in the same month last year. In the first three months, the authorities approved 42,800 new apartments – more than a quarter (25.7 percent) less than a year ago.
The number of building permits for single-family homes fell particularly significantly in the first quarter: by 35.6 percent to 9,200 units. In the case of two-family houses, the number of approved apartments fell by 20 percent to 3,200. Even in the largest building type, multi-family houses, the number of approved apartments fell significantly by 22.9 percent or 8,500 units to 28,700 apartments.
15,200 fewer building permits than in the same quarter last year
Including conversions of existing apartments, 53,500 applications received the green light from the authorities in the first quarter. That was a good fifth (22.2 percent) or 15,200 building permits fewer than in the same quarter of the previous year.
Construction projects have become significantly more expensive in the past two years due to the sharp rise in loan interest rates and increased construction costs. Building permits have been going downhill for months. In view of the housing shortage, especially in metropolitan areas, associations in the construction and real estate industry are pushing for more government funding.
Source: Stern
