If you talk to people about the housing market, the reaction is rarely optimistic. In Germany, this is due to a dangerous situation that has become increasingly acute, especially in the past year. New residential construction has collapsed due to the market environment of rapidly rising interest rates, construction prices driven strongly by inflation, ever more stringent energy requirements, and the disappearance of subsidies.
Currently, only around 200,000 housing units are expected to be completed in 2024 – with demand exceeding 700,000. The high demand results from a combination of the lack of completions in the current and previous years, the uninterrupted influx into the metropolitan regions, and the high number of refugees from Ukraine. Although the impression can be gained that policymakers have increasingly understood how critical the situation is becoming, it remains to be seen whether, when, and to what extent the envisaged measures will have an impact. In the current issue of our Temporary Housing Update, we discuss which further actions could relieve the housing market and what role temporary furnished housing can play in this.