The number of new apartments completed in Hamburg last year plummeted by more than a quarter compared to the previous year. A total of only 5,976 new homes were built, which is 2,343 fewer apartments or 28 percent less than in 2024, as reported by the North Statistical Office. Nationwide, the number of newly built homes decreased by 18 percent to approximately 206,600.
Senator Pein: Cause is the Construction and Real Estate Crisis
“The current completion figures are not an expression of a lack of demand, but the expected delayed effects of a massive construction and real estate crisis with exploding costs, high interest rates, and difficult financing conditions,” said Urban Development Senator Karen Pein (SPD). The historic slump in building permits in 2023, to around 5,400 apartments, as a result of geopolitical and economic crises, is now having a delayed effect on completions. “Projects that were stopped or postponed then are missing today.”
Andreas Breitner, director of the Association of North German Housing Companies (VNW), stated: “We are in a construction crisis. Up to our necks.” To prevent the crisis from completely stifling construction activity, “we need faster building permit procedures, more suitable plots of land, actually available building materials, fewer standards, efficient public funding, more land sales, and less leasing.”
Tenants’ Association Alarmed
The Hamburg Tenants’ Association also expressed alarm. “This massive decline is a blow,” said chairman Rolf Bosse. “The current new construction figures are far from sufficient to cover the great demand for housing in Hamburg, let alone affordable housing.” There continues to be a significant shortage, especially in social housing.
Last year, only 1,953 social housing units were completed – 308 apartments or almost 14 percent less than the year before. This brings the total number of social housing units to 76,533. However, more than 640,000 Hamburg households are entitled to social housing. In addition, more than 13,000 urgent housing seekers are still waiting for a home. Bosse called for a rethinking of housing construction. “The market rules alone cannot meet the demand.” The actual goal of the red-green Senate is 3,000 new social housing units per year.
Left Party: Rent Out Long-Paid-Off Apartments More Cheaply
Heike Sudmann, housing expert for the Left Party, called on the Senate to create more affordable housing. “The permanent social commitment of subsidized new build apartments is an important way forward.” Another way must lead to a socially responsible use of existing stock. “Long-paid-off apartments, especially in large housing stocks, could also be rented out more cheaply.”
The CDU parliamentary group’s housing policy spokeswoman, Anke Frieling, emphasized: “Due to the scarce supply, rents are rising incessantly – anyone moving to Hamburg or having to move has no chance of finding an affordable apartment.” The Senate must finally move from talking to acting and, for example, abandon the hereditary building rights model. “The acquisition of land from public hands must again be made possible so that banks are finally willing to finance private and cooperative construction.”
Average Apartment Size Grows to 73.1 Square Meters
According to statisticians, 440,100 square meters of new living space were created last year – 129,260 square meters or 22.7 percent less than the year before. The average size of the new apartments was 73.1 square meters – 5.8 square meters more than the year before. The proportion of small one- and two-room apartments in new construction fell from 50.4 to 47.2 percent.
Of the 5,976 new apartments, 5,672 were built in new houses, and 349 were integrated into existing buildings, according to statisticians. In new houses, almost 80 percent of the apartments were in multi-family houses with three or more units. The rest were distributed among single and two-family houses, dormitories, and non-residential buildings such as office and commercial buildings.
Fewer New Condominiums
The number of new condominiums decreased from 1,610 in 2024 to 1,554 last year. However, the Statistical Office pointed out that the data is based on building permits, so it is possible that some or even all of the condominiums could eventually be rented out.
At the end of last year, 5,395 new apartments were under construction, according to statisticians. Another 10,435 apartments could have been started but were not. In total, the so-called construction overhang amounted to 20,561 apartments in 3,879 buildings. Building permits for 519 apartments had already expired.
More Building Permits – But Still Far From Target
The number of new building permits increased significantly last year. A total of 6,676 apartment permits were recorded – 44.6 percent more than in 2024. However, this is still significantly less than planned by the red-green Senate. The actual goal is 10,000 new apartment building permits each year.
