Flats, flats, flats are what the country needs

Housing is urgently needed in Germany. Especially in the big cities, the situation is coming to a head. The federal government's target of 400,000 new flats per year has become a distant prospect. The number of building permits has dropped by 31.5 percent compared to the previous year.

At the end of 2022, there were around 43.4 million dwellings in Germany. As reported by the Federal Statistical Office, this was 0.7 percent or 282,800 more dwellings than at the end of 2021. Compared to the end of 2012, the housing stock increased by 6.3 percent or 2.6 million dwellings. This means that the housing stock has grown more strongly in the past ten years than the population in Germany, which increased by 4.8 percent or 3.8 million to 84.4 million people in this period. However, the long period under consideration distorts the view. Especially recently, immigration to the big cities has increased enormously, as has the trend towards single households.

In the long term, the number of small households in Germany will increase by 3.8 percent to 33 million by 2040. The number of large households with three or more persons, on the other hand, will fall by 6.4 percent to 9.6 million. BBSR Director Dr Markus Eltges: "The increase in small households is changing housing demand and supply".

In July 2023, the construction of 21,000 flats was approved in Germany. As reported by the Federal Statistical Office, this was 31.5 per cent or 9,600 building permits less than in July 2022. From January to July 2023, the number of building permits for flats fell by 27.8 per cent compared to the same period last year. This corresponds to a decrease of 60,300 to 156,200 dwellings. Rising construction costs and deteriorating financing conditions are the main reasons for the decline in building projects.

For many families, the dream of owning their own four walls has been shattered for the time being. Federal Minister for Building Klara Geywitz told the Neue Osnabrücker Zeitung: "We have many old houses and we have a growing need for living space and affordable single-family homes. To bring this together, I want to launch a new programme to promote the purchase of existing properties, in addition to the existing promotion of new construction".

(Photo: © Daniel Nebreda, Pixabay)