Slowing Down in Thuringia: A 19.7% Drop in New Homes for 2024
Decrease approximately 20% of the available homes ready for occupancy in Thuringia - Approximately one-fifth fewer dwellings in Thuringia are prepared for inhabitation
The Erfurt Statistical Office reports that Thuringia has seen a significant drop in the number of residential units completed in 2024. A total of 3,310 units were constructed, 813 fewer than the previous year. That's a whopping 19.7% decrease in new homes!
The bulk of these residential units came from new constructions. Renovation, expansion, and extensions added 683 units to the total (587 in 2023).
The number of single-family homes decreased by 26.2% in Thuringia last year, with 1,000 new homes completed compared to 1,355 in 2023.
Interestingly, private builders contributed to 54.6% of the completed new residential units, followed closely by companies at 25%. Public builders, such as municipalities, federal and state governments, accounted for a mere 0.8%. This marks a decrease from 2023, when public builders were responsible for 9% of the residential units.
- Thuringia
- Home Construction
- Erfurt
- Housing Market
Construction Costs and Inflation Trends
The construction sector in Germany, including Thuringia, is experiencing a cautious recovery, with some positive trends in finishing trades like painting and electrical work [1]. Employment in construction remains relatively stable, with a slight decrease in self-employed persons [1]. The headline inflation dropped to 2.3% in March 2025 due to a decrease in energy prices and a stronger euro, but industrial goods prices and materials like motor vehicles may indirectly impact construction inputs [1].
Less Completions, Lower Pressure
Though regional data for Thuringia is not available, fewer residential unit completions generally lead to less demand for materials and labor, potentially slowing the pace of cost increases or even causing stabilization or decline [1][4]. However, Germany's construction sector is still recovering, with new orders in building construction showing positive tendencies but below sustainable levels [1].
Slowing economic growth and financing conditions may be behind the decrease in residential unit completions in Thuringia, as elevated interest rates and market uncertainty are hindering the growth of private residential construction in Germany [4].
- The significant drop in new home construction in Thuringia, as reported by the Erfurt Statistical Office, might prompt a reevaluation of the employment policy in the construction sector, particularly for private builders, to encourage more residential unit completions and stimulate the housing-market.
- Finance and investing in the real-estate market could become more attractive due to the slowing down in Thuringia's housing market, as the decrease in new residential unit completions could lead to lower pressure on material and labor costs, potentially offering more favorable financial opportunities for investors in the future.
