Germany is currently facing a shortage of around 1.4 million homes, according to an analysis published on Thursday in Berlin. The findings come from the Social Housing Monitor 2026, released by the Pestel Institute and the Alliance for Social Housing. The shortage affects “almost exclusively” low-cost housing and social housing, the report says. Younger people and older adults are being hit particularly hard by the situation.
According to the study, new housing construction is falling far short of meeting demand. “To eliminate the housing deficit by 2030, well over 400,000 new homes would have to be built each year,” said study director Matthias Günther. However, the alliance expects that in the coming years only around 200,000 new homes per year will be completed.
The alliance includes, among others, the German Tenants’ Association, the construction union IG BAU, and organizations from the construction materials industry. It is calling for the number of social housing units to be doubled from the current level of around one million to two million. The alliance also advocates targeted support for housing construction in cities and regions with universities and vocational training centers, as well as tax incentives for companies that build housing for apprentices.
Young people in education and training, students, and those at the start of their careers are described as being among the biggest losers in the current housing market. According to the alliance, people from the so-called baby boomer generation are also increasingly affected. Many are expected to leave the workforce in the coming years but will have only small pensions. In many cases, they may no longer be able to afford their current homes. Günther spoke of “forced moves due to old-age poverty” and of a “displacement of older people from cities caused by housing shortages.”
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