Bavaria's housing construction plummets as Upper Bavaria faces 25% drop in 2025
Housing construction in Bavaria has fallen sharply in 2025, with Upper Bavaria seeing the steepest decline. The region built nearly 5,300 fewer homes than the previous year. Meanwhile, the Upper Palatinate was the only area to record an increase in new builds. Upper Bavaria completed just 15,575 homes in 2025—a drop of 25% from 2024. This decline was expected after a previous fall in building permits. The region’s housing shortage has worsened as a result.
Southern Bavaria has been hit hardest by the slowdown. The area already faced severe housing pressure before construction numbers fell further. In contrast, the Upper Palatinate saw a small rise in activity. The region built 5,101 homes in 2025, an increase of 272 compared to the previous year.
The overall decline in housing construction deepens Bavaria’s housing crisis, especially in the south. Upper Bavaria’s sharp drop contrasts with the Upper Palatinate’s modest growth. Officials had warned of the slowdown after building permits fell in earlier years.
