• German housebuilding is on the brink of collapse as construction projects are being canceled and orders are slowing.
  • This could have a wide-ranging impact for the German economy, which has been struggling in recent months.
  • Higher interest rates and increased materials costs are among the reasons for the issues.
A construction site of residential buildings on the Elbe dike near downtown Wittenberg.

Germany's Olaf Scholz once set the goal of building 400,000 new homes a year, even before he become chancellor.

Fast forward two years, and German housebuilding looks like it's collapsing, putting pressure on both his hard-to-reach goal, but also the overall economy of the country.