The number of newly built apartments has hardly increased in the past year. The mini plus is far too little. So the problem will only get worse.
At least Federal Building Minister Klara Geywitz should breathe a sigh of relief: In Germany, slightly more apartments were built in 2022 than in the previous year. The numbers now presented are not quite as catastrophic as feared, the forecasts were even more devastating. But it still doesn’t look good, the bottom line is that it’s far from enough.
As early as 2021, around 293,000 apartments were far fewer than they should be, and the numbers fell for the first time since 2011. Things were only marginally better in 2022. 295,000 apartments were completed last year, as the Federal Statistical Office announced on Tuesday. An increase of only 0.6 percent. The level of 2020 could not be reached.
The traffic light government has thus clearly missed its big promise to ensure a new start in the construction sector and 400,000 new apartments per year. Construction Minister Geywitz predicts that this will not be the case until 2024. Experts, however, also believe that this is a myth. Because the conditions for builders are persistently bad, instead of “more apartments”, the Federal Republic is heading straight for “even less”.
Crisis, crisis, climate change
First the corona pandemic and then the Ukraine war brought the housing market to its knees. There are now enough workers on most construction sites. However, the cost of building materials has exploded and interest rates on building loans have risen enormously. Profitable construction is hardly possible in this way, major construction projects have been canceled and the industry is groaning under the strain. And there is no improvement in sight – with the climate and energy conversions that the federal government and the EU are demanding in the coming years, builders will be further deterred.
Germany urgently needs housing, and the need for affordable housing in particular is huge: the Pestel Institute has calculated that there is currently a shortage of at least 700,000 apartments. Other experts even assume a million.
The Ukraine war also had an impact here: more than a million refugees came to Germany. A record number. At first, many found accommodation with volunteers, friends and families, but now they are also pushing harder into the housing market. But it has little to offer, especially for low earners.
Everyone is affected
One thing is already certain: it will be tight in the next few years, very tight in Germany. Not only is it becoming more difficult to build new, renting is also becoming even more expensive. The German Tenants’ Association is already warning that “everything that is legal” will be used to increase rents in the future, rents will rise much faster than wages. A disastrous spiral that hits every German who is not yet living in their own home.
Politicians may not have been to blame for the poor framework conditions, but they are now called upon to finally take countermeasures with all means possible. Because only one thing can bring relief: more apartments with low rents. One possible solution: new subsidy programs for builders that reduce the interest and climate burden – and are specifically linked to the obligation to actually create affordable living space and not luxury lofts.
