Building permits for new homes fell in October for the sixth straight month due to higher borrowing and material costs.
It fell by 14.2 percent compared to the same month last year to 25,399, as the Federal Statistical Office announced on Friday.
From January to October, the authorities gave the go-ahead for the construction of 297,453 homes, down 4.7 percent or 14,564.
In view of the negative development, Federal Building Minister Klara Geywitz admitted this week that the traffic light coalition will miss the target of 400,000 new apartments this year.
"Indeed, we will not reach 400,000 this year," said the SPD politician in the Bundestag.
The construction and real estate industry even warns of a collapse.
"All signs indicate that there will be a dramatic slump in 2023," says an appeal by the 17 leading associations and chambers of the construction, planning and real estate industries.
Fewer than 300,000 are expected to be completed by the end of the year.
In the coming years one can be happy if there are 200,000.
The construction industry was still sitting on a thick backlog of orders.
However, there have been more and more cancellations recently.
In November, 16.7 percent of companies were affected, after 14.5 percent in the previous month, as the Ifo Institute found out.
"The ever-increasing construction prices, higher interest rates and lower funding opportunities are weighing on new business and have been leading to a noticeable number of cancellations for several months," said Ifo researcher Felix Leiss.
The number of building permits for single-family homes fell particularly sharply in the first ten months, falling by 15.9 percent to 66,925.
"Here, however, the base effect as a result of the expiry of the Baukindergeld in the previous year must be taken into account," the statisticians explained.
Two-family houses fell by 7.4 percent to 24,716, while multi-family houses increased by 2.1 percent to 158,768.