According to the Federal Statistical Office (Destatis), the number of newly constructed apartments has significantly decreased from approximately 295,000 in both 2022 and 2023, and 251,900 in 2024. Experts estimate that at least 300,000 new units are necessary annually to alleviate the housing shortage. The previous coalition government aimed for 400,000 units per year, a target that was never met before the coalition’s dissolution in late 2024. Federal Minister for Construction Verena Hubertz attributed the downturn to rising costs linked to geopolitical conflicts, including the war in Ukraine and the ongoing conflict in Iran.