Pestel Study

Demand-Based Housing Construction Could Create 745 000 Jobs in Germany

Germany’s housing re­quire­ment totals 400 000 new builds per year, but in 2009 only 150 000 units are likely to be built. If the number of new units was increased to match actual demand, then 745 000 new jobs would be created in housing construction and the public authorities would receive around € 20 bill. in additional revenue, that is according to a study conducted by the Eduard Pestel Institute entitled “Economic Consequences of New Housing Construction in Germany”. The Pestel Institute study compares, for instance, the effects of the construction of detached (single-family) houses with those of the construction of single-storey flats on the labour market as well as on taxes and duties.

Going by the current situation, the construction of 90 000 detached houses and 60 000 single-storey flats is expected and based on this expectation, a demand for only around 500 000 full-time employees in housing construction and public authorities revenue to € 13 bill. can be calculated.

The Pestel Institute study is based on data from Germany’s Federal Statistical Office and the German Institute for Economic Research (DIW).


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