Framework Conditions for the Housing Market Stabilized
Berlin: (hib/LBR) The framework conditions for the housing market have stabilized. This is the result of an analysis by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). According to the analysis, the number of building permits issued in Germany rose by 4.6% in 2022 compared to the previous year. At the same time, the number of completed apartments increased by 3.8%. The government’s goal of building 400,000 new apartments per year has thus been achieved for the first time.
The BBSR also sees positive developments in the area of rents. In 2022, rents for new leases rose by an average of 1.3%. This is significantly less than in previous years. The increase in rents is particularly low in large cities. In Berlin, for example, rents for new leases rose by only 0.5% in 2022.
The BBSR attributes the stabilization of the housing market to a number of factors. On the one hand, the supply of new apartments has increased. On the other hand, the demand for housing has decreased somewhat. This is due, among other things, to the fact that more and more people are living in shared apartments or in nursing homes.
The BBSR expects the housing market to continue to stabilize in the coming years. However, the institute also warns that the war in Ukraine could have a negative impact on the housing market. This is because the war is leading to higher construction costs and is making it more difficult for refugees to find housing.
Federal Construction Minister Klara Geywitz (SPD) welcomes the stabilization of the housing market.
“The stabilization of the housing market is good news for tenants and homeowners,” said Geywitz. “We have worked hard to achieve this goal. We have increased the supply of new apartments and we have taken measures to curb the rise in rents.”
Geywitz emphasized that the government will continue to work to ensure that everyone in Germany has access to affordable housing. “We want to build more apartments, we want to make rents more affordable, and we want to protect tenants from eviction,” said Geywitz.
Rahmenbedingungen für Wohnungsmarkt stabilisiert
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