237,000 additional apartments needed in Lower Saxony
Almost 237,000 additional apartments will be needed in Lower Saxony by 2040. This is according to the housing market report published on Thursday by the Lower Saxony Ministry of Construction, the NBank and the Association of the Housing and Real Estate Industry (vdw).
According to the report, the peak in the number of households and the need for new construction is expected in 2031. However, increased energy and construction costs are having a significant impact on the number of new construction projects in Lower Saxony. "New construction is collapsing," said Robert Koschitzki from the NBank in Hanover. According to the forecast, the number of newly built apartments in the state will halve compared to 2022 to 17,000 apartments by 2024.
The housing market report is published every two years. It analyzes the reasons for the development of rental and purchase prices in Lower Saxony and aims to provide recommendations for action and prospects for the coming years.
The housing policy in Lower Saxony needs to address the severe shortage of 237,000 apartments projected by 2040. The report suggests that new construction projects are being affected by rising energy and construction costs, causing a potential halving of new apartments built in the state by 2024.
Source: www.dpa.com
