Germany faces a severe social housing crisis, with a shortage of 550,000 units nationwide.

A study by the Pestel Institute highlights the need for at least 2 million social housing units by 2030 to address the growing demand.

Despite increased federal funding, only 23,000 social housing units were built in 2023, far below the annual target of 100,000. Rising construction costs and the focus on high-end "premium" social housing have exacerbated the issue, making many units unaffordable for low-income families.

Experts warn that without clear government targets and streamlined funding, the housing deficit will continue to grow, driving up rental prices and worsening inequality.

The next government is urged to commit to long-term solutions, including affordable construction practices and expanded subsidies.