German Residential Construction Continues to Lag Behind Demand

Germany: Despite a slight increase in approvals for social housing, the number of completed flats in 2023 remained nearly flat compared to the previous year. This is far below the government's target of 400,000 new homes annually. The industry blames rising construction costs and interest rates for project delays and cancellations. The construction industry argues that many completions in 2023 were approved before these cost increases. The German construction industry federation suggests the housing shortage is likely to worsen in the coming years, as new projects face significant cost hurdles, the construction industry expects a future decline in completed houses, creating a wider gap between what's built and what's actually needed for affordable housing.

Source: Yahoo