Bavaria's housing crisis deepens as Upper Bavaria construction plummets 25%
Housing construction in Bavaria has seen sharp regional differences in 2025. While some areas reported modest growth, Upper Bavaria experienced a steep decline. The drop has worsened an already tight housing market, particularly in the south of the state. In Upper Bavaria, only 15,575 new homes were completed last year. This marks a 25% fall from 2024, with nearly 5,300 fewer properties built. The region’s housing shortage has deepened as a result, with southern Bavaria feeling the strain most acutely.
The slowdown follows an earlier drop in building permits, signalling long-term challenges. Meanwhile, the Upper Palatinate saw a small rise, constructing 5,101 homes—a gain of 272 compared to the previous year.
The figures highlight a widening gap between Bavaria’s regions. Upper Bavaria’s sharp decline contrasts with the slight growth elsewhere. With permits already falling, the housing squeeze is likely to persist in the hardest-hit areas.
