Housing construction targets missed – These are the biggest government cost drivers

Construction of apartment buildings

Many cities oblige private investors to create price-regulated housing.

(Photo: imago images/teamwork)

Berlin The number of newly built apartments in Germany has only increased marginally. According to the Federal Statistical Office (Destatis), 295,300 residential units were completed last year. That was only 1,900 apartments or 0.6 percent more than in 2021, but less than in 2020 with 306,400 apartments.

Federal Building Minister Klara Geywitz (SPD) has thus clearly missed her new construction target. The federal government had set itself the target of 400,000 new apartments per year, including 100,000 social housing units.

In German residential construction, more and more projects are being canceled or put on hold. This is due, among other things, to supply bottlenecks, sharply rising material and energy costs, more expensive financing and a lack of construction and trade capacities.

However, the state also provides for cost drivers in housing construction. According to calculations by the Central Association of the Real Estate Industry (ZIA), almost 40 percent of the purchase price to be paid by the buyer can be traced back to direct government taxes and requirements.

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