A look at the building permit figures has caused many observers to worry in recent years. Now the figures are looking more positive again for the first time. This raises hopes that the downward trend may have been halted.
In January 2025, the construction of 18,000 homes was approved in Germany. According to the Federal Statistical Office, this was 6.9% or 1,200 building permits more than in January 2024, marking the third consecutive month in which the number of building permits rose. In December 2024, 5.1% more building permits had already been issued than in December 2023.
In January 2025, a total of 15,100 apartments were approved in new residential buildings. This was 11.6% or 1,600 apartments more than in the same month last year. The number of building permits for single-family homes rose by 21.7% (+600) to 3,400 apartments. The number of approved apartments in two-family houses fell by 10.1 percent (-100) to 1,000 apartments. In the numerically most important building type, multi-family houses, the number of approved apartments rose by 5.8% (+500) to 9,800 apartments.
Prior to this, the number of apartments approved for construction had fallen continuously for almost three years since April 2022 - with all the negative consequences for the housing market. The housing shortage and rising rents are particularly noteworthy. This was mainly due to the sharp rise in interest rates and the resulting explosion in construction costs. However, demand for affordable housing remained consistently high.
The construction industry is one of the most important economic sectors in Germany and its products - buildings and roads - are an integral part of people's everyday lives in Germany. In 2024, there were around 20,000 companies in the construction industry with more than one million employees. The glaring housing shortage in cities in particular has highlighted the urgency of building new homes.
Conclusion: Rising building permit figures are a good sign and give hope for a revival of the housing market.
Photo / Graphic: © Federal Statistical Office, Destatis, 2025
