Germany\u2019s prolonged housing downturn is forcing timber producers to reduce output and postpone investment, while proposed cuts to construction subsidies risk delaying a recovery in demand.<\/p>\n
Production in the German sawmill and timber industry fell almost 9% in January\u2013August 2026 compared with an already weak previous year, according to the German Sawmill and Timber Industry Association (DeSH). Companies have curtailed production, extended maintenance shutdowns and deferred investment as construction activity remains subdued.<\/p>\n
In a statement published on November 3, DeSH said Germany was expected to complete fewer than 200,000 homes this year, which would be the lowest annual total since 2011. The figure is a forecast, with full-year completions still to be reported.<\/p>\n
The association warned that reductions in new-build support proposed in the draft 2027 federal budget could compound the shortfall. Its president, Stephan Lang, argued that predictable funding was needed to restore investment across the construction supply chain.<\/p>\n
DeSH is a member of \u201cImpulse f\u00fcr den Wohnungsbau\u201d, an alliance of industry organisations whose latest position paper advocates sustained housing finance, stronger support for social housing and simpler building procedures. The alliance\u2019s proposals address both the availability of funding and the administrative costs that can prevent projects from proceeding.<\/p>\n
For timber producers, the immediate concern is whether housing projects can move from planning into construction. DeSH argues that serial and modular timber systems could shorten building schedules and reduce costs, but that lengthy approval procedures continue to limit their use.<\/p>\n
The association wants more consistent approval processes across Germany and greater recognition of modular timber construction in technical building rules. It presents these changes as a way to expand housing delivery while supporting domestic manufacturing.<\/p>\n
DeSH also gave a qualified welcome to the recently published draft legislation on Geb\u00e4udetyp E, or Building Type E, intended to make less costly construction easier. In the association\u2019s assessment, the proposal mainly provides contractual flexibility while leaving substantial technical and building-code requirements in place.<\/p>\n
Lang argued that reducing construction costs would require a wider review of mandatory standards, rather than additional agreements between contracting parties. DeSH considers the draft a starting point but wants further changes before the reform is finalised.<\/p>","protected":false},"excerpt":{"rendered":"
Germany\u2019s prolonged housing downturn is forcing timber producers to reduce output and postpone investment, while proposed cuts to construction subsidies risk delaying a recovery in demand.<\/p>","protected":false},"author":1,"featured_media":100532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n