The number of building permits for new apartments in Germany fell significantly in August.

It fell by 9.4 percent compared to the same month last year to 28,180 apartments, as the Federal Statistical Office announced on Tuesday.

This is not only the fourth decline in a row, but also the strongest since November 2021. From January to August, the authorities gave the green light for the construction of a total of 244,605 ​​apartments, which corresponds to a decrease of 3.0 percent or 7624.

The development is another setback in the federal government's efforts to build 400,000 apartments per year.

The Ifo Institute had previously reported on a growing wave of cancellations in the industry: In September, 16.7 percent of the companies surveyed were affected by project cancellations, after 11.6 percent in the previous month.

And what we from the government goal?

"Due to the exploding material and energy prices and the rising financing interest, planning security is gone," said Ifo researcher Felix Leiss.

“Construction costs keep going up.

For some builders, all of this is no longer feasible, they put projects on hold or pull the ripcord completely.”

The number of building permits for single-family homes fell particularly sharply in the first eight months, by 15.8 percent to 55,260.

"Here, however, the base effect as a result of the expiry of the Baukindergeld in the previous year must be taken into account," according to the statisticians.

In the case of two-family houses, there was a decline of 2.8 percent to 21,176 apartments.

In the case of apartment buildings, on the other hand, the number of approved apartments rose by 5.2 percent to 130,746 apartments.

Despite all the problems in construction caused by delivery difficulties, high energy prices and rising interest rates, the federal government does not want to give up its goal of 400,000 new apartments a year.

"We are sticking to the goal, that has to be said explicitly," said Federal Chancellor Olaf Scholz last week during the presentation of a package of measures by the so-called Alliance for Affordable Housing.

"We need more affordable housing," said the SPD politician.