Germany Sees Sharp Decline in Residential Building Permits

Germany's residential building permits have plummeted to their lowest level since 2010, with only 215,900 approvals granted last year, reflecting a 16.8% decrease compared to the previous year. The decline is attributed to red tape, high construction costs, and rising interest rates, leading to a significant gap between housing needs and supply. Projections for this year suggest that approvals may fall to around 210,000, which would be a 45% decrease from the government's target of 400,000 new units annually. This situation has raised concerns among economists, who highlight the urgent need for policy changes to stimulate construction in light of ongoing housing shortages in major cities. Despite the critical nature of the issue, it has received little attention in political discussions. Industry experts are calling for simpler building regulations and more reliable funding to address the crisis.