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Germany Today

German news in English

Friday, November 22, 2024

German Housing Crisis Deepens as Building Permits Plummet

Published: 2024-07-18

Germany's housing crisis is worsening as building permits continue to decline sharply.

In May, only 17,800 new housing units were approved, a 24.2% decrease from the previous year.

The first five months of 2024 saw a 21.5% drop in building permits compared to the same period last year.

This downturn is attributed to high interest rates and rising construction costs.

The situation is further exacerbated by a historic low in building land purchases, with transactions falling by 34% in 2023 compared to the previous year.

Experts warn that this trend signals a long-term decline in new housing construction, potentially worsening the existing housing shortage in German cities.