September 29, 2025, 12:59 pm | Read time: 3 minutes
Despite the “construction turbo,” many German citizens lack faith in a turnaround in the strained housing market, according to a recent survey. The numbers reveal significant distrust in politics—at least among a certain group of people.
Widespread Skepticism Toward Government’s New Construction Goals
The federal government has set ambitious goals with the so-called “construction turbo” to counteract the housing shortage. However, according to a recent and representative survey by Immowelt called “Housing Shortage Barometer 2025,” many people doubt these plans will succeed. Seventy-six percent of respondents do not believe the government will meet its new construction goals. Only 24 percent are confident that the self-imposed targets can be achieved. The study surveyed 1,000 people aged 18 and over across Germany online.
Overall, the population remains pessimistic about the housing market’s development. Forty-two percent expect the housing situation to worsen in the next 12 months. Forty-six percent expect no change. The government is given slightly more trust in reducing bureaucratic hurdles. Twenty-nine percent consider simplifying construction, planning, and environmental regulations realistic. The chances for effective rent control in urban areas, avoiding vacancies in rural areas, and increasing homeownership rates are each seen by 27 percent.
Dramatically Rising Rents—Focus on Energy-Efficient Renovations
A central issue remains the ongoing increase in housing costs, according to many respondents. Eighty percent are convinced that homeownership will remain unaffordable for the majority of the population. Almost as many (79 percent) expect rents to continue rising—regardless of what measures the government takes.
Energy-efficient renovations are seen as a major cost driver. More than eight out of ten respondents partly blame renovation obligations for rising rents.
Younger People and Families Have More Trust in Politics
Overall, the survey also shows varied opinions within the population. While older respondents are particularly skeptical, younger generations are significantly more optimistic. Among 18- to 29-year-olds and 30- to 39-year-olds, the share of positive responses is at least 5 percentage points above average for all topics surveyed. Nearly half of the younger age group believes the government can effectively prevent vacancies in cities—among those over 60, it’s less than one in five.
Families with children also show more trust: “At the same time, we see that younger people and families with children have significantly more confidence in the federal government’s measures. With the right policy decisions, the government can initiate long-term positive developments,” says Dr. Robert Wagner, CEO of Immowelt, in the press release.
In this group, approval ratings in all areas are at least five percentage points above average. While 24 percent of the overall average believe that politics can create housing for all income groups, among multi-person households with children, it’s 37 percent.
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Homeowners Look More Optimistically to the Future
Another factor in the differing perceptions is housing status. People with homeownership view market developments more positively than renters. About one in six of the homeowner group expects an improvement in the situation next year—among renters, only eight percent share this hope.
Appeal to Politics
In light of the general uncertainty, Immowelt CEO Dr. Robert Wagner calls for targeted political measures to promote homeownership: “Concerns about further rising rents are significant. Homeowners are generally more optimistic about the housing market’s future. The federal government should therefore specifically try to make the acquisition of owner-occupied homes more attractive for first-time buyers. For example, with subsidies, tax breaks, and government guarantees for this group of buyers.” He continues: “This would relieve the rental market and also reduce the risk of old-age poverty for many people who are still renters today.”