Stuttgart/Berlin. According to the Pestel Institute, Germany is facing a record housing shortage, with 1.4 million missing apartments nationwide as of the end of 2024. This critical deficit isn’t expected to improve in the coming years, according to Pestel chief economist Matthias Günther, who discussed the findings in Berlin. Baden-Württemberg alone is short 196,000 apartments.
The economic research institute estimates that between 2025 and 2030, the southwest region will need up to 362,000 new apartments. To meet this demand, Baden-Württemberg would need to construct approximately 60,300 apartments annually. However, the institute anticipates only around 200,000 new apartments will be built across the country each year—roughly half the required amount. The analysis indicates that this housing scarcity is now hindering economic growth. The paper states that without a surge in construction, attracting immigrant workers will be difficult, “and our country will not be able to overcome the weak growth.”
Young and Old Feel the Pinch
The study highlights a growing housing crisis impacting all demographics.
The study was commissioned by the Alliance for Social Housing, a coalition including the German Tenants’ Association, IG Bau, the Society for Masonry and Housing Construction, and other organizations. The alliance is advocating for a federal-state agreement to boost housing construction, particularly social housing.
Young people under 25 and seniors are disproportionately affected by the shortage. The study identifies younger generations as becoming a “disadvantaged group” in the housing market. Simultaneously, many older city residents find their rental costs unsustainable after retirement and are being forced to relocate. Munich and Hamburg were specifically cited as cities experiencing a notable exodus of senior citizens.
What’s driving the crisis? A combination of factors, including insufficient new construction, rising material costs, and bureaucratic hurdles, are contributing to the housing shortage in Germany.
- Germany faces a record housing shortage of 1.4 million apartments.
- Baden-Württemberg needs 60,300 new apartments per year to meet demand.
- The housing shortage is identified as a drag on the national economy.
- Young people and seniors are the most vulnerable groups.
(dpa/lsw)
