Building permits for new homes in Germany rose 15.1% in the first half of 2026 to 126,300 units, marking the strongest first-half increase since 2016, according to federal statistics.
The rebound was broad-based: permits for multi-family homes climbed 16.9% to 67,000 units, while single-family homes rose 12.7% and two-family homes surged 27.3%. Federal Housing Minister Verena Hubertz credited government subsidy programmes and a regulatory fast-track initiative for the recovery.
Despite the uptick, permit volumes remain at 2011 levels, and the sector faces headwinds. Completed housing units fell 18% in 2025 to 206,600, the lowest since 2012, following a peak of 306,000 in 2020. Record low water levels on the Rhine and other rivers threaten to push construction costs higher, potentially undermining the recovery.