Housing permits rise by 6.8 percent in August

German building authorities approved a total of 20,600 homes in August 2026. Compared with August 2025, this represents an increase of 6.8 percent, or 1,300 homes. The Federal Statistical Office published the figures on 16 October. The recovery in permit numbers is therefore continuing, while actual construction activity presents a different picture.¹³

Apartment buildings drive the increase in permits

For the first eight months, the total reached 169,400 approved homes. This is 12.1 percent more than in the corresponding period a year earlier. The total includes both new construction and additional homes created through work on existing buildings. New residential buildings alone accounted for 137,500 homes, an increase of 12.7 percent.¹²

Apartment buildings made the largest contribution in numerical terms: 90,600 homes were approved in this category, 14.5 percent more than a year earlier. Approvals for single-family houses rose by 7.8 percent to 31,500. In two-family houses, 10,000 homes were approved, an increase of 21.7 percent. The strongest percentage growth was therefore not in the largest building category by volume.²³

Conversions also contributed. In August, 4,200 additional homes were approved through such work, 18.2 percent more than in the same month a year earlier. For January to August, the statistics show 29,100 homes approved through alterations to existing buildings. This represents growth of 10.1 percent. The recovery is therefore not limited to newly constructed residential buildings.¹²

Permits do not yet represent additional housing supply

The distinction between approved and completed homes is essential when interpreting the figures. In 2025, 206,600 homes were completed nationwide, 18.0 percent fewer than in 2024. This was the lowest annual total since 2012. Meanwhile, 760,700 approved homes remained unfinished at the end of 2025. Construction had already started on 307,200 of them. The construction backlog therefore encompasses different project stages.⁵

Higher permit numbers consequently do not imply an immediate, equivalent expansion in available housing. Destatis also highlights a statistical qualification: late reports from authorities are sometimes included only in subsequent reporting months. The August figure therefore does not exclusively reflect decisions actually made in August. This limitation concerns the allocation of permits to particular reporting periods.¹⁵

Order books remain weak despite higher permit numbers

An ifo survey also published on 16 October shows a deterioration in the residential construction business climate in September. The indicator fell from minus 22.5 to minus 25.1 points. While companies assessed their current business situation as largely unchanged, they became more pessimistic about the coming months. Rising permit numbers thus contrast with more cautious expectations among the businesses surveyed.⁴

The share of companies reporting insufficient orders remained unchanged at 41.3 percent. Meanwhile, the proportion reporting cancelled orders increased from 13.4 to 14.1 percent. Taken together, these findings suggest that permit statistics indicate more approved projects, but the business survey does not yet show a corresponding improvement in order books. A broad recovery in project implementation has therefore not yet been established.⁴