German home construction falls to lowest level since 2012
The number of residential units completed in Germany dropped 18 percent to 206,600 last year as high costs and interest rates weighed on the sector. While Ifo expects further declines this year, government officials point to rising permit numbers and record state support as signs of potential recovery.
Xurve View
Xurve View
Germany residential completions fell 18% to 206,600 units in 2025, hitting the lowest level since 2012. High building costs and interest rates drove the second consecutive annual decline in the housing sector. The supply crunch pressures the government to accelerate deregulation as housing shortages persist for low-income households.
