The current figures from the Federal Statistical Office are sobering: instead of more new flats, 4.2 percent fewer flats were built last year and even 10.4 percent fewer new single-family homes. Experts fear that this will further exacerbate the bottleneck on the housing market.
The federal government has set a target of 400,000 new flats per year in Germany. In 2020, more than 300,000 new flats had been created. However, the number fell back to the 2019 level in 2021. Last year, 293,393 flats were completed in Germany. That was 12,983 fewer than the year before. For the first time, the annual increase in the number of new buildings, which has been observed for ten years, did not continue.
In contrast, the number of building permits for dwellings rose by 3.3 percent in 2021 compared to the previous year and continued to be significantly higher than the number of construction completions. This resulted in a surplus of approved but not yet completed dwellings totalling 846,467 dwellings. The continuing increase in the construction overhang accelerated.
Housing construction is stalling due to staff shortages, supply bottlenecks and shortages of raw materials, as well as significant price increases as a result of increased demand. Companies and builders are thus prevented from realising their projects within the planned timeframe.
The housing industry associations, Zentraler Immobilien Ausschuss (ZIA), Immobilienverband Deutschland IVD and Verband der Immobilienverwalter Deutschland (VDIV), agree: a show of strength is necessary. All levers should be used to ensure that Germany makes progress in housing construction despite the tense international situation. With the arrival of hundreds of thousands of refugees from Ukraine, the need has increased once again. The associations presented the joint paper "Ten Steps for 400,000" - a list of measures to boost housing construction.
Conclusion: If fewer new flats are built than are needed, the pressure on the housing market will increase further and the search for affordable housing will become more difficult.
(Photo: © Erich Westendarp, Pixabay)
