Thuringia: Residential Construction Decline Persists Amid Rising Costs

Residential construction in the German state of Thuringia continues to face a significant downward trend, exacerbating housing shortages in many cities. Data from the State Statistical Office reveals that building permits for new apartments dropped by 29.5 percent in the first quarter of 2026 compared to the previous year, with approvals for multi-storey buildings falling by nearly 44 percent. Construction costs have surged by 8.5 percent, reaching an estimated 2,070 euros per square meter. The Thuringian Housing Association attributes this stagnation to high loan and construction costs, alongside delayed funding guidelines from the Ministry of Infrastructure. Frank Emrich, the association's director, indicated that 2026 might be effectively lost for new housing funding projects. Meanwhile, the supply of social housing is shrinking, with approximately 800 units leaving rent control annually. Current estimates suggest a need for 20,000 social housing units, yet only around 11,000 exist. Regional disparities are evident, with Eichsfeld, Erfurt, and Jena seeing the most activity, while thirteen districts approved no multi-family house projects at all.