In Nordrhein-Westfalen: Baukosten bremsen Wohnungsneubau weiter aus

The article, published by the Allgemeine Bauzeitung—Germany’s leading construction trade newspaper—reports on the severe slowdown of new housing construction in North‑Rhine Westphalia (NRW). The piece stems from the annual press conference of the Verband der Wohnungs‑ und Immobilienwirtschaft (VdW) Rheinland‑Westfalen, where industry leaders highlighted the impact of rising construction costs and external economic shocks, notably the Iran‑War, on residential development.

In 2025, the total number of newly completed apartments across NRW fell to 37,185, a drop of roughly 9 % from the previous year’s 41,025. This shortfall leaves the region about 9,000 units below the projected annual demand of 46,000 homes. Among VdW member companies, completions fell even more dramatically—over 30 %, from previous levels to 3,607 units—despite an investment surge to nearly €4 billion in 2025.

VdW’s survey identified four primary cost‑related challenges: volatile interest rates, material‑supply bottlenecks, rising energy prices, and overall inflation of construction expenses. More than 25 % of surveyed firms have already postponed new builds or renovations. The heightened financial burden is particularly acute for socially oriented housing providers, who must balance affordability with the need for investment.

Despite the cost crunch, sustainability remains a priority. Over 80 % of VdW members continue to employ low‑carbon technologies such as heat pumps. Additionally, more than one‑third of firms are experimenting with serial and modular construction methods to achieve economies of scale and reduce waste. However, VdW officials stress that planning and permitting processes must be streamlined to fully realise these efficiencies.

In 2025, NRW allocated a record €2.1 billion to housing subsidies, underscoring the state’s commitment to maintain supply. Nevertheless, net cold rents stayed relatively modest, with an average of €6.82 per square metre, still below the national average. This stability suggests that, even under financial strain, landlords are refraining from significant rent hikes.

The findings are based on a VdW‑conducted economic survey of 82 member companies and cooperatives, carried out between 26 May and 16 June 2026. The data capture both macro‑level market trends and firm‑specific responses to the ongoing cost pressures.

VdW calls for a reliable, long‑term housing‑funding framework to mitigate the current volatility. It also urges accelerated standardisation of planning and approval procedures to enable quicker deployment of modular and serial construction, which could alleviate both cost and time constraints for future sustainable housing projects.