Particularly in Germany’s major cities the demand for housing continues to increase dynamically. This is due to the contrasting demographic trend in subregions of Germany according to a study by the Bundesinstituts für Bau-, Stadt- und Raumforschung (BBSR) from July 2015, which analysed data from ongoing spatial monitoring on regional immigration and emigration movements. The result: Large and medium German cities have seen an increase in inhabitants, while rural areas have experienced a population decline. The growing number of inhabitants has naturally also lead to a growing demand for housing in these cities. [1] There is also a continuing trend towards single households, additionally increasing the number of households.

Although new housing construction has increased in major German cities in recent years, it can barely keep up with the increasing demand. According to a recent study by the Institut der deutschen Wirtschaft, 245,000 new homes were built in the previous year, of which only 66,00 were built in cities with more than 100,000 inhabitants. However the demand in these cities is estimates to be at at least 102,000 homes, an increase of around 55%. [2]

[1] Bundesinstituts für Bau-, Stadt- und Raumforschung: Wachsen oder schrumpfen?, BBSR-Analysen KOMPAKT 12/2015

[2] Institut der deutschen Wirtschaft Köln: Der künftige Bedarf an Wohnungen. Eine Analyse für Deutschland und alle 402 Kreise, IW policy paper 24/2015