The housing industry warns that there could be a shortage of one million apartments by 2025.
Construction site in Leipzig: There is an urgent need for living space.
Foto: Jan Woitas / dpa
The construction industry boomed for a long time. However, with rising interest rates and construction costs, orders are declining. Associations are therefore warning of a massive housing shortage. Axel Gedaschko, President of the Association of Housing Industry (GdW), told the „Bild“ newspaper that by 2025, Germany could potentially face a shortage of 900,000 to one million homes. He attributed this to the „downturn in the housing industry.“
„In 2024, it is possible that slightly over 200,000 apartments could be constructed. In 2025, the number of completed apartments could even decrease to below 200,000,“ said Gedaschko, if the federal government does not take countermeasures. He called on the federal government to lower the value-added tax from 19 to seven percent for construction materials and services as „a first step.“
Felix Pakleppa, Hauptgeschäftsführer des Zentralverbandes Deutsches Baugewerbe, nannte den Auftragseinbruch »katastrophal«. »Der Wohnungsbau befindet sich im Sturzflug«, betonte er. »Die Zahl der genehmigten Wohnungen deckt den Bedarf bei Weitem nicht mehr.«
In light of this, the CEO of ZDB called for an investment package from the German government for the construction industry: „If the federal government has billions for the automotive industry, chip factories, and industrial power, it should also consider investing a few billion for social peace in the housing market,“ he said.
Die Zahl der Baugenehmigungen ging im Juli um 31,5 Prozent oder 9600 im Vergleich zum Vorjahresmonat zurück. Insgesamt wurden im Jahr 2023 bis Juli 156.200 neue Wohnungen genehmigt.
According to a survey conducted by the Ifo Institute, the crisis in the German housing construction sector is worsening. In August, one in five companies, or 20.7 percent, reported canceled projects, as announced by the Munich-based institute last week. In July, it was 18.9 percent.
According to Ifo, the main reasons for the cancellations are the significantly increased construction costs and interest rates. As a result, many projects that were still profitable in early 2022 are no longer feasible today. „The reduction of subsidies due to stricter energy efficiency requirements also burdens the calculations of the builders,“ explained Ifo expert Klaus Wohlrabe.
The Federal Ministry of Construction stated that it is working intensively on a package of measures to stimulate the construction and real estate industry.