Housing has never been as scarce as it is today. German cities are facing a shortage of 2 million apartments. Demographic changes and increasing migration are driving the demand up by an additional 300,000 units annually. Singles and low-income families are the most affected. Due to the lack of supply in the market, housing costs have doubled over the past 10 years. Rising construction costs and high interest rates are exacerbating this tense situation.
In addition to the social impacts, the construction of new housing plays a crucial role in climate protection. The construction and operation of new buildings are responsible for 40% of all CO2 emissions. Additionally, the number of areas sealed due to the construction of new housing is increasing.
While digitisation has led to significant productivity increases in nearly all industries, the construction sector has remained stagnant. Shortages of skilled labor and raw materials have led to a decline in productivity over recent years. The result is a 40% increase in prices, contributing further to the shortage of new housing."
