Rising Trend: Number of Individual Homes in Germany Projections to Increase Up Until 2045 - projected rise in the number of single-occupancy homes in Germany continues up to 2045
Germany to Witness Growth in Compact Apartments by 2045
Germany is set for significant changes in its housing market over the next few decades, with a marked increase in the demand for compact apartments suitable for one to two persons. This projection comes from the BBSR, an entity based in Bonn, which has made these predictions about the growth of single households in Germany.
Demographic trends play a crucial role in this shift. Germany's population is aging, and household sizes are generally shrinking. This results in a greater number of smaller households or individuals living alone or as couples, thus increasing the demand for compact living spaces.
The demand for these compact apartments is not limited to urban areas but is also expected in southern Germany. In fact, the BBSR predicts increases mainly in southern Germany and urban areas such as Hamburg or Berlin. By 2045, the proportion of single households in Germany is expected to increase from the current 42% to 44%.
In city-states, as many as 52% of households could consist of only one resident by 2045. This trend is particularly noticeable in western German regions, where a decline in household numbers is expected, such as in the Saarland, parts of the Ruhr area, or in southern Lower Saxony. On the other hand, the growth in single households is not limited to urban areas, but is also expected in southern Germany.
The prognosis also suggests that the number of single households will surpass 42 million by 2045, representing around a 1% growth in the number of households. This growth is driven by the increasing number of older people living alone in Germany and the changing household structures.
Jana Hoymann, author of the prognosis, stated that the growing number of small households is changing housing demand. The demand for compact apartments for one to two persons is increasing, particularly in large cities, according to Hoymann.
The growth in compact apartments is also aligned with Germany’s climate neutrality plan by 2045. Pushes for eco-friendly, modular, and efficient construction methods indicate that new housing developments—including compact apartments—will favor practical unit sizes with lower ecological footprints.
While data on public infrastructure and non-residential construction remain robust, private residential demand for compact dwellings is forecasted to remain strong due to demographic and economic factors. The ongoing urbanization and the renovation of aging housing stock (over two-thirds built before 1980) are prominent factors driving this demand.
In summary, by 2045, the German housing market is expected to accommodate an increased demand for compact apartments for one to two persons, fueled by demographic shifts toward smaller households, urbanization, and policy emphasis on sustainability and renovation of existing stock.
- As people in Germany adapt to changing demographics and lifestyle preferences, the financial sector may need to invest more in home-and-garden projects focused on compact apartments to cater to this growing housing market.
- The ongoing trend of single households in Germany is not solely based on urban living, but also extends to certain rural areas in southern Germany, suggesting a broader shift in housing-market preferences and real-estate investments.
- By 2045, the housing-market landscape in Germany will reflect a continuous increase in the number of single households, with a predicted growth of 44% from the current 42%, making investments in home-and-garden projects for compact apartments a promising venture.
