Housing Shortage In Germany At 20 Years High According To Zia

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Housing Shortage In Germany At 20 Years High According To Zia

Housing Shortage In Germany At 20 Years High, According to ZIA

According to a new report from the ZIA (German Property Federation), there's a housing shortage in Germany. In fact, the shortage of housing facilities is at a 20-year high. In addition, any new construction projects of residential nature are also expected to go through further decline.

Overall, there is a massive difference between the supply & demand of housing facilities in Germany. If we talk about numbers, a difference of around 700000 (0.7 million) buildings is expected in the next few years.

This means that the already troubling housing shortage in Germany is expected to get worse in the next few years. And to make matters worse, the pace of new constructions in the country has also slowed down significantly.

According to the report, the core of the housing problem in Germany is an increase in financing costs. And we all know that financial costs are directly tied to the interest rates in Germany.

For now, the interest rate in Germany is around 2.19% which is making it difficult for people & companies to raise money or get a loan. In addition, the price of building materials is also on the rise, which is also causing a decline in new construction.

Just last year, the construction industry in Germany had warned about the problem. And now, it seems that the problem is staring right into the eyes of the German citizens.

In 202, the total number of newly completed apartments was 280000, and for this year, the expected number is around 245000.

According to the housing minister of Germany, the government's target of new construction will be missed in 2023. Earlier, the target was also missed in 2003, which tells us that the problem is here again after 2 decades.

According to experts, the current sentiment in the German construction industry has also deteriorated as of late. And the only way out of this is to lower the interest rates in Germany or to offer subsidies for building materials.

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