Housing construction in MV is collapsing: 7,700 units are acutely missing!

Housing construction in MV is collapsing: 7,700 units are acutely missing!

What is the situation with housing construction in Mecklenburg-Western Pomerania? The situation is tense, and not just since yesterday. Only 4,598 new homes were completed in the region in 2024, a decrease of 1.6 percent or 74 homes compared to 2023. For comparison: In 2022 there were 5,616 apartments and in 2020 7,493 apartments were built. These trends are alarming and show that construction activities in the region have stalled significantly, as n-tv reported.

A main reason for this development is the sharp increase in construction prices. Last year, construction costs averaged 2,065 euros per square meter, which is around two thirds more than ten years ago, when you could still calculate 1,229 euros. The combination of high prices and rising interest rates represents a “toxic mix” that poses major challenges for many property developers ndr highlights.

Acute housing crisis

The situation is particularly dramatic because there is currently a shortage of around 7,700 apartments in Mecklenburg-Western Pomerania. The shortage is particularly severe in the university cities of Rostock and Greifswald. Not only is there a tense market situation here, but the rent cap also makes it difficult for many people to find affordable living space. In the Rostock district alone there is currently a shortage of 1,300 apartments, and in Rostock itself there are around 1,700 apartments on the shortage list.

The Ludwigslust-Parchim district recorded the fewest completions with only 251 new apartments. The number of building permits is also worrying: in 2024, almost 40 percent fewer permits were issued compared to 2022 - from around 6,900 in 2022 to only around 2,600 in 2024. This slowdown has serious effects on the housing supply in the region.

Challenges and solutions

The construction industry in Mecklenburg-Western Pomerania is under pressure. Companies are experiencing a massive burden due to the shortage of materials and the increasing construction prices. Ralf Kohl from Vakon Baugesellschaft is trying to build apartment buildings in Peenemünde despite the crisis situation. The need for private apartments and houses, however, has fallen noticeably.

There are a few suggestions to stimulate housing construction again. This includes, for example, expanding the income limits for subsidized housing and introducing new funding options for people with middle incomes. The head of the construction association is also calling for a reduction in the real estate transfer tax from the current 6 percent. However, the Ministry of Finance rejects such a measure, even though revenue in 2022 was an impressive 198.2 million euros.

However, communities such as Papendorf have projects coming up that could bring some hope for movement in housing construction. Together with the city of Rostock, a new residential area is being planned that could create urgently needed living space. Nevertheless, it remains to be seen whether the challenges of construction costs, rising interest rates and the shortage of skilled workers can be overcome in the near future.