The number of newly built apartments in Germany fell below the 300,000 mark again last year.
With 293,393 units completed, the policy target of 400,000 new apartments per year was clearly missed.
According to the Federal Statistical Office on Monday, the number was 4.2 percent below the previous year's level.
In 2020, for the first time since 2001, more than 300,000 new apartments were built in Germany.
The annual increase in the number of completed apartments that began in 2011 did not continue in 2021, as the Wiesbaden authority announced.
Many construction projects are also stagnating because workers are missing and the prices for building materials have risen sharply.
According to estimates by politicians and the construction industry, 350,000 to 400,000 apartments have to be completed in Germany every year in order to meet the high demand for real estate and to combat the housing shortage in cities.
The federal government has also set itself the goal of providing more affordable housing.
Special package required
The figures from the Federal Office include the completion of new buildings as well as construction work on existing buildings.
The IG Bauen Agrar Umwelt demanded a "special package of social housing".
Around 20,000 euros could be saved in a social apartment with 60 square meters if the VAT rate for social housing were reduced from 19 to 7 percent, said union boss Robert Feiger in Frankfurt.
In addition, one must focus more on the conversion of offices that are no longer needed.