There is too little construction going on all over Germany, and the housing shortage is particularly severe in large cities. There are thousands of apartments missing. This is why rents are rising sharply – and now purchase prices are rising again.
The holes in the roadsides can be seen in many places. Thousands of building sites are currently lying idle, although new rental apartments should actually be built there. But because of the high interest rates and the high construction costs, many construction companies have stopped their work for the time being. As a result, far fewer new apartments are being completed than planned. The German Economic Institute (IW) has determined how large the construction gap really is in this country – that is, the gap between supply and actual demand. The figures are alarming.
Source: Stern
