7d • General discussion
Housing shortage in western Germany is worse than expected, study finds
Germany’s western states are missing around 1.2 million homes, according to the Pestel Institute. Their economist, Matthias Günther, says the situation is getting worse.
Because there aren’t enough affordable places to live, companies can’t find workers. People don’t want to move for a job if they can’t find a place they can afford. Sectors like industry, caregiving, and skilled trades are suffering the most.
The institute is telling the government to support all types of housing construction — social housing, private rentals, and owner-occupied homes.
Construction numbers have crashed:
From 2023 to 2024, housing construction dropped 14.4%, down to 251,900 units — far below the government’s target of 400,000 new homes per year.
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Housing shortage in western Germany is worse than expected, study finds
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