Lowest stand since 2010: Fewer apartments approved again

Last year, fewer apartments were again approved in Germany. The number of 215,900 apartments marks a low point in statistics since 2010 when the authorities had only given the green light for 187,600 units. Compared to the previous year, the number fell by 43,700 apartment permits or 16.8 percent in 2024, as the Federal Statistical Office continues.

Associations in the construction and real estate industry again demanded effective subsidies and simpler building regulations in order to counter the housing shortages that are particularly common in the metropolitan areas. The SPD-led Federal Building Ministry sees signs of a trend reversal for the current year. In addition, the construction industry is stabilized with increased grants for social housing. Around 40 percent of the approved apartments are currently being publicly funded.

Still many apartments under construction

According to the Federal Statistical Office, the decline in permits actually slowed down in the second half of the year. In addition, the number of permits does not necessarily indicate the number of newly completed apartments. In recent years, this has been almost constant around 300,000 apartments per year. The difference to the permits is related to delays and the so -called construction overhang from projects that have already been approved but not completed. At the end of 2023 there were almost 827,000 units. According to the federal government, around 390,000 apartments are currently under construction.

Annual goal is missed again

However, it is becoming apparent that the annual goal of 400,000 new apartments issued by the traffic light coalition will also be missed in 2024. For the year, the government is expecting a decline to 265,000 finished apartments, while the Central Association of the German Construction Trade again estimates up to 40,000 units. The exact statistics on completions and construction overhang should not be available until May.

Private builders as well as companies had primarily caused increased interest rates for real estate loans and higher construction prices. In the meantime, the European Central Bank has carried out the turning point, so that the loan costs have left its maximum. According to the construction industry, the mortgage lenses with long term at the end of the year were 0.2 percentage points lower than at the beginning of the year.

The Federal Association of Free Real Estate and Housing companies states: “We are still missing hundreds of thousands of apartments. We are still building too complicated and too expensive. We captivate our craft businesses and housing companies with umpteen forms, applications and approval processes.” Housing construction must therefore be declared a top topic by the new federal government.

The top association of the GdW housing industry is similarly expressed. According to the announcement, President Axel Gedaschko explains: “Affordable living space is becoming increasingly scarce, the consequences for social cohesion in Germany are serious. Politics must no longer ignore this dramatic trend. The next federal government must finally treat housing as a top priority – it is about Nothing less than the social stability of our country. “

As a “construction turbo”, the general manager of the construction industry, Felix Pakleppa, is recommended, including simpler and uniform construction standards, detoxified state building regulations and fewer sharp energy regulations. The state must also accommodate the construction ends for tax purposes.

The construction industry also indicates declining permits even in non-residential buildings. The volume of the estimated construction costs is declining in both business and public buildings. The federal government, the federal states and municipalities should not save at the wrong end, but would have to increase the building studgets in order not to make the investment backlog greater.