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4w ago

New-Build Housing Slumps as Germany Fails to Close Gap With Demand

High construction prices, sharply higher borrowing costs and stricter technical rules are choking new housing while planned cost-cutting reforms remain unapproved.

Im Jahr 2021 hatten die GdW-Mitglieder noch fast zehn Milliarden Euro in Neubau investiert – dieser Wert wird laut Prognose wohl schrumpfen.
Da kommt nicht genug nach – der Wohnungsbau nicht nur in Hamburg lahmt
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Overview

  • Official figures show new housing completions fell to 206,600 units in 2025, a drop of about 18 percent from the prior year.
  • The industry association GdW projects only around 200,000 completions in 2026, far below an estimated annual need of roughly 320,000 homes.
  • Housing companies shifted spending toward existing-stock work in 2025, investing €20.8 billion overall with €8.1 billion into new-builds and GdW forecasting new-build investment by its members will fall to about €6 billion in 2026.
  • Regional data reveal diverging markets: Hamburg saw residential order values collapse by more than half in Q1 2026 while non-residential construction and some investment transactions showed partial stabilization, and NRW reports that higher costs make new projects viable only at rents near €18 per m² net cold.
  • The federal government is preparing measures such as a simplified 'Gebäudetyp E' and faster permit procedures to cut costs, but no binding law has been passed and social housing completions are projected to fall sharply, raising concerns about rent stress if planned Wohngeld savings proceed.