Residential construction: Will only replacement demand be met in the long-term?

Between 2000 and 2002 new residential construction declined by 134,000 units per annum. In 2003 the number of housing completions fell against the previous year by 7.4%. In 2004 the decline continued. However, the fall is limited to eastern Germany, whereas in western Germany, due to the relatively stable construction of new homes, stagnation can be expected. In the fourth edition of the construction forecast for Germany, the Ifo Institute expects 260,000 housing completions in Germany in 2004 - 32,000 in eastern and 228,000 in western Germany.