Only 53,500 planning applications approved
Housing construction crisis continues despite high demand
May 17, 2024, 12:06 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
Last year there were fewer building permits than at any time since 2012. Despite the housing shortage, the decline continued unhindered in the first quarter. Associations criticize the increase in construction costs and insist on subsidies and relaxation of energy standards.
The lull in the construction of new apartments in Germany continues despite high demand for living space. Both in March 2024 and in the first quarter as a whole, the number of building permits was significantly below the previous year’s figures, as the Federal Statistical Office announced.
According to Wiesbaden statisticians, the construction of 14,700 apartments was approved in March. That was a good quarter (27.3 percent) less than in the same month last year. In the first three months, the authorities approved 42,800 new apartments – more than a quarter (25.7 percent) less than a year ago.
The number of building permits for single-family homes fell particularly significantly in the first quarter. These fell by 35.6 percent to 9,200 units. In the case of two-family houses, the number of approved apartments fell by 20 percent to 3,200. Even in the largest building type, multi-family houses, the number of approved apartments fell significantly by 22.9 percent or 8,500 units to 28,700 apartments.
Including conversions of existing apartments, 53,500 applications received the green light from the authorities in the first quarter. That was a good fifth (22.2 percent) or 15,200 building permits fewer than in the same quarter of the previous year.
Associations are pushing for subsidies
Construction projects have become significantly more expensive in the past two years due to the sharp rise in loan interest rates and increased construction costs. The number of building permits has been decreasing for months. In view of the housing shortage, especially in metropolitan areas, associations in the construction and real estate industry are pushing for more government funding.
These include interest support programs for private investors and easing of increased building standards for energy efficiency. Last year, the number of building permits plummeted to 260,000 apartments, the lowest level since 2012.