According to calculations by DIP partner Aengevelt Immobilien, the nationwide housing market experienced a statistical relief in 2025. This amounted to 281,000 units, equivalent to 0.6% of the total housing stock. Two factors contributed to this development: Firstly, the statistically recorded housing stock increased by 196,000 residential units. Secondly, the number of private households decreased by 85,000. However, these nationwide aggregates conceal highly diverse regional developments, as analysed by the real estate firm.
The Federal Statistical Office reports that the number of households with a primary residence nationwide decreased from approximately 41,211,000 to approximately 41,126,000 in 2025. Concurrently, the population declined by 110,000 people to 83,467,117 as part of demographic change. A significant reason for this was the decline in net immigration to 235,000 people, which meant the surplus of deaths could no longer be offset. As the number of private households is considered a relevant indicator for housing demand, this resulted in an overall reduction of housing demand by 0.2% in 2025.
While demand moderately declined, the statistically recorded housing stock nationwide saw an increase of 196,000 residential units or 0.4% to approximately 44,000,000 units. The sum of increased supply and reduced demand results in the aforementioned total relief of 281,000 units. However, Aengevelt notes that the statistically recorded housing stock, from experience, does not reflect a portion of actual housing withdrawals, as not all decommissioning, mergers, and changes of use are promptly reported to the authorities. This discrepancy can influence the real market situation.
Aengevelt's analysis also reveals a widening gap between shrinking, structurally weak regions with housing vacancies and growing, structurally strong regions that continue to suffer from housing shortages. This is confirmed by ongoing rent increases. Surveys by empirica document an increase in average rents for new builds of 3.4% to 14.08 EUR/m² and for existing properties of 3.9% to 10.77 EUR/m² over the past twelve months.
The scarcity of housing supply is particularly evident in the A-cities. There, rent levels for new builds reached an average of 19.94 EUR/m² and for existing properties 15.26 EUR/m² in the second quarter of 2026. Munich remains the city with the highest rents in Germany. In the new build segment, an average of 25.20 EUR/m² is achieved there, while the average rent for existing properties is 21.12 EUR/m². Upper Bavarian municipalities, Frankfurt am Main, and Hamburg follow in subsequent positions.
Dr. Wulff Aengevelt, managing partner of Aengevelt Immobilien, stated that despite the slight relief, the nationally rising rent levels prove that structurally strong cities are still affected by a significant housing shortage. Furthermore, the moderate decline in housing demand is a consequence of the unusually low immigration. He explained that current housing construction cannot keep pace once migration returns to previous years' levels. He emphasised the necessity of substantially improved investment conditions to stimulate new housing construction and gradually reduce the housing deficit, accumulated over years and driving up rents, in urban conurbations.
