265,000 new apartments according to the forecast: How the housing market will develop by 2024

265,000 new apartments according to the forecast: How the housing market will develop by 2024

According to a report by www.zeit.de, Federal Construction Minister Klara Geywitz expects 265,000 new apartments next year. This is based on a current report and represents an adjustment to the forecasts, which turned out to be better than expected. Despite this positive development, the federal government will significantly miss the target of 400,000 new apartments annually for 2024.

The calculations are based on an unpublished report by the German Institute for Economic Research (DIW) on behalf of the ministry. These figures show that, despite declining building permits, almost as many new apartments are being completed as in the previous year. A possible explanation for this is a large backlog of apartments that have already been approved but not yet started or completed, which currently stands at 880,000.

The report also shows that construction costs are just over a quarter higher than in 2020, which is expected to lead to an expected nine percent decline in housing investment in 2024. These developments could lead to a slowdown in growth in the real estate sector and have an impact on the entire housing market. In addition, this could also have consequences for the financial sector, as investment in housing construction could decline and demand for other investment options could increase.