Building permits in Germany in free fall - housing crisis intensifies

Building permits in Germany in free fall - housing crisis intensifies

housing construction and the persistent crisis

The current figures for the building permits of apartments in May 2024 throw a worrying light on housing construction in Germany. According to the Federal Statistical Office, 24 percent fewer apartments were approved compared to the same month of the previous year. A total of only 89,028 building permits were registered this year, compared to over 155,000 two years ago. This continuous decline raises the question of how serious the housing crisis in Germany really is.

The building permits act as an indicator of housing and show whether builders and investors are driving their projects ahead. However, the high number of approved apartments does not seem to have a positive effect on the real estate market. High construction interest rates and overambitious energetic requirements scare potential builders and investors. This state leads to more and more capacity bottlenecks in companies that work in housing and prevents the maintenance of existing capacities. This is particularly fatal because the need for new apartments in Germany is still high.

It can be seen that there is an urgent need for action to boost housing construction. A solution could be an interest support for those willing to build, especially young families who want to fulfill their dream of home. However, a suitable funding instrument, such as the EH-55 funding required by construction experts, should be available. The previous EH-40 funding has proven to be inadequate and will not do justice to the increasingly decreasing building permits.

Another step towards promoting housing could be to simplify the construction process. It is gratifying to see that politics becomes active with a draft law on building type E. The main focus should be on not only to do justice to the latest technical standards, but also allow the technically necessary. A clear and right -wing regulation of these conditions could bring housing on the right track.

It is now in the hands of politics to tackle these problems and to promote housing in Germany. The persistent crisis has far -reaching effects on the community and the economy. The creation of affordable living space is of central importance for the quality of life of people and the attractiveness of Germany.