Despite the rise in construction permits, the homeowners’ association (Haus & Grund) reports that there is no sign of relief in the housing market. Kai Warnecke, the association’s president, told the “Rheinische Post” (Wednesday edition) that the Federal Minister for Construction is overstating the recovery from a historic low point, claiming it is a comeback for residential construction. Warnecke pointed out that in the first half of 2026, approximately 31 percent fewer residential apartments were approved compared to the same period in 2016.
Warnecke continued, stating, “An approved apartment is far from being a built apartment. Because while Federal Minister for Construction Hubertz celebrates today what she calls a housing construction comeback, the Federal Minister of Justice threatens to tear it all down tomorrow with her rent law regulations.” He characterized this as “contradictory and harmful housing policy.”
He also argued that the role of state-owned housing companies is not helpful. Instead, Warnecke suggested that the state should not become the actual developer, but rather enable the many private property owners to resume building and renting. Separately, he noted that the number of building permits for residential apartments in Germany has seen a strong increase in the first half of the year, the strongest increase seen in over a decade.
