Institute: Saxony's cities must significantly increase housing construction

According to a housing market analysis by the Pestel Institute, the construction of new apartments in Saxony's major cities will need to be significantly increased in the coming years. According to the latest forecast, around 4,970 apartments would have to be built in Leipzig, 4,530 apartments in Dresden and 460 apartments in Chemnitz every year to meet the urgent demand. The analysis was commissioned by the Bundesverband Deutscher Baustoff-Fachhandel (BDB), among others.

The new construction is necessary to reduce the existing deficit, but also to gradually replace worn-out apartments in old buildings, said the head of the institute, Matthias Günther. "This is particularly about post-war buildings that are no longer worth refurbishing."

Dwindling residential construction despite high demand

In Leipzig, however, Günther expects the construction volume to decline. The scientist spoke of a "slowdown in new residential construction, which is increasingly running out of steam". In the first five months of this year, only 485 new apartments were approved in the whole of Leipzig. This compares to 1,349 building permits in the same period last year - a decrease of 64 percent.

According to the State Statistical Office, building permits for a total of 8,699 apartments with a total living space of 893,600 square meters were issued in the Free State last year - 26 percent less than in the previous year. Accordingly, 84 percent of these permits related to the construction of new apartments.

Vacant apartments despite demand

Despite the number of vacant apartments in Leipzig, Dresden and Chemnitz, Günther believes that the demand for housing will not change: the current census registers around 19,310 vacant apartments in Leipzig, 13,220 in Dresden and as many as 16,750 in Chemnitz. This corresponds to 5.4 percent of the total housing stock in Leipzig, 4.1 percent in Dresden and 11 percent in Chemnitz. However, these are often apartments that are no longer habitable in their current condition and would have to be extensively renovated.

Together with the scientists from the Pestel Institute, the President of the German Building Materials Trade Association (BDB), Katharina Metzger, called for a reduction in building standards and greater government support to drive forward the urgently needed construction and renovation of apartments. Metzger emphasized that the planned federal budget for 2025 provides for far too little funding, especially for social housing, which requires at least 12 billion euros annually. According to Metzger, the housing construction sector is currently experiencing a "real crash", which could lead to social tensions in the long term.