The number of building permits for residential construction continues to fall - financial experts warn of serious consequences

The number of building permits for residential construction continues to fall - financial experts warn of serious consequences

According to a report by www.t-online.de, housing construction remains in a deep crisis - the number of building permits is declining again, which could have serious consequences.

Approval numbers continue to fall

In November, the construction of 20,200 apartments was approved, which represents a decrease of 16.9 percent compared to the same month last year. This long-term trend of double-digit declines in building permit numbers is extremely worrying. Both industry experts and the Federal Statistical Office are observing this development with great concern.

Increased construction costs and interest

In the eleven months through November, the decline was particularly high for single- and two-family homes, with permits for single-family homes falling by 38.6 percent and for two-family homes by 49.2 percent. The decline in multi-family homes was also 23.8 percent compared to the same period last year. Increased interest rates for building financing and construction costs are largely responsible for this. Although a slight decrease in construction costs is expected for the new year, costs remain high in long-term comparison.

Housing shortages could become serious

The building permit numbers, which continue to fall month after month, make the deep crisis in housing construction abundantly clear, as Axel Gedaschko, President of the umbrella association of the housing industry GdW, emphasizes. If the federal government does not act immediately and noticeably improve the conditions, especially for affordable housing, the housing shortage could become a dividing wedge for our society for years to come.

Overall, these figures and statements raise concerns that the real estate crisis could have serious effects on the housing market. The continued decline in building permits and increased construction costs suggest that the situation will not get better in the near future. This could lead to a further increase in property prices and exacerbate the housing shortage. Industry experts and politicians are called upon to take countermeasures and improve the conditions for housing construction.