housing market

The German housing market is in deep crisis. Building permits are declining, cancellations are increasing, and consequently, fewer and fewer projects are being completed. This shrinking supply meets persistently high or even rising demand. The effects of this imbalance are immediately evident in rent price developments. Recently, significant rent increases have been observed, especially for new leases in Germany’s major cities.

A study by the Pestel Institute and the Construction Research Institute ARGE caused a stir at the beginning of the year. According to calculations, a housing shortage of over 700,000 units could occur in Germany during this year. This would be the largest housing deficit in over twenty years.