A broad coalition of industry stakeholders in the construction and real estate sectors is urgently warning of a looming standstill in residential construction and calling on the German federal government to take decisive action. In a joint letter addressed to government representatives and parliamentarians, the group expresses concern that anticipated stimulus measures for housing construction have yet to materialize.
The letter, authored by 28 associations and organizations including the IG Bau trade union, the BFD real estate association and the Federal Chamber of Architects, cautions against a further decline in new construction projects. Industry experts now predict approximately 200,000 new residential units will be built this year – nearly 50,000 fewer than in 2024.
The coalition, operating under the banner “Impulse for Housing Construction” is demanding the government intervene. Specific requests include significantly increased funding for social housing construction and the allocation of additional land for residential development. The group emphasizes the need for simplified and more accessible funding programs.
Furthermore, the alliance is urging the government to uphold promises made during the coalition agreement, including tax relief measures aimed at stimulating housing construction. They specifically request a substantial increase in housing construction funding within the federal budget, particularly for 2026.
The coalition emphasizes the escalating risk as the industry increasingly loses capacity. Employment in residential construction has been declining for three years, while insolvency rates within the sector are rising. They argue that the government must urgently shift its approach and re-establish housing construction as a key driver of the domestic economy. The group notes that a promised “housing construction turbo” has yet to take effect and that the federal budget risks underserving the sector in the coming year.