Germany Faces Severe Housing Shortage: 550,000 Apartments Needed
A recent study by the Pestel Institute, cited by the Verband der Immobilienverwalter Mitteldeutschland (VDIV), has highlighted a significant housing shortage in Germany. The report, published in 2025, estimates a gap of around 550,000 apartments nationwide. This issue is exacerbated by high immigration rates and a high share of tenants in the country.
The study, conducted by the Pestel Institute, revealed that the demand for housing has outstripped supply, leading to a shortage of approximately 550,000 apartments across Germany. This gap is attributed to both high demand, fueled in part by recent immigration, and insufficient construction to meet these needs.
In 2023, Germany had a high share of tenants, with 52 percent of people living in rented accommodation. This figure underscores the pressing need for more housing options, particularly in urban areas where demand is highest.
The findings of the Pestel Institute's study underscore the urgent need for action to address the housing shortage in Germany. With high immigration rates and a significant proportion of tenants, the demand for affordable housing continues to rise. Stakeholders, including the VDIV, are calling for increased construction and policy measures to bridge this gap and ensure adequate housing for all.
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