welt.de
German Construction Sector Projected to Grow in 2026, but Housing Shortage Persists
Germany's construction industry is expected to grow by 2% in 2026, following years of decline, but this growth is insufficient to address the ongoing housing shortage, with housing construction remaining significantly below 2021 levels, prompting calls for a social housing program.
- What is the projected growth in Germany's construction volume in 2026, and what are the immediate implications for the housing shortage?
- Germany's construction industry, after five years of decline, is projected to see a 2% growth in price-adjusted construction volume in 2026, according to the DIW economic institute. However, this growth follows a nearly 4% decrease expected in 2024 and a near 1% drop in 2023. Even with the projected growth, the construction volume will remain significantly below its 2021 peak.
- What policy interventions are currently in place to address the housing crisis in Germany, and what additional measures does the DIW propose?
- While policy measures like tax breaks for new housing construction and efforts to control cost increases are showing initial positive effects, they are insufficient to address the immediate housing crisis. The DIW advocates for an immediate social housing program to mitigate the persistent housing shortage and its associated consequences. The ongoing economic slowdown further complicates the situation, as consumers remain hesitant due to job security concerns.
- What are the primary causes of the decline in housing construction in Germany, and what is the projected shortfall compared to pre-crisis levels?
- The projected 2% growth in Germany's construction volume in 2026 masks a persistent housing shortage. The housing construction volume is expected to remain approximately 25% below the 2021 level in 2026, a significant shortfall contributing to high rents and limited housing supply, particularly in urban areas. This shortfall is despite government initiatives to stimulate housing construction.
Cognitive Concepts
Framing Bias
The headline (not provided, but inferred from the text) likely emphasizes the predicted upturn in the construction industry, potentially downplaying the continued severity of the housing shortage. The article leads with the positive prediction of 2% growth in 2026 before detailing the ongoing challenges, creating a potentially misleading first impression. The repeated emphasis on the large gap between housing needs and construction output frames the situation negatively despite the positive growth prediction.
Language Bias
The language used is generally neutral and factual, relying on data and expert quotes. However, phrases like "angeschlagenen Baubranche" (struggling construction industry) and "riesige Lücke" (huge gap) might be considered slightly emotive, although they accurately reflect the severity of the situation. More neutral alternatives could be 'challenged construction industry' and 'substantial shortfall'.
Bias by Omission
The article focuses on the DIW's predictions and doesn't include other expert opinions or data from different research institutions. It also omits discussion of potential long-term solutions beyond the mentioned government measures and the call for a social housing program. The article might benefit from incorporating diverse viewpoints to provide a more comprehensive picture.
False Dichotomy
The article presents a somewhat simplified view of the situation by focusing primarily on the supply side of the housing market (lack of construction) without giving equal weight to demand-side factors (e.g., population growth, immigration, changing household structures). It also frames the government's measures as having 'first successes' without providing concrete data to support this claim.
Sustainable Development Goals
The article highlights a significant shortfall in housing construction in Germany, resulting in a housing shortage and rising rents. This directly impacts the goal of sustainable and inclusive cities and communities (SDG 11), which aims for adequate, safe, and affordable housing. The gap between housing needs and construction output is substantial, hindering progress towards this SDG.