The number of building permits for new homes fell sharply in the second quarter of 2025. Municipalities issued 20,000 permits, 3,300 fewer than in the same period a year earlier. This is reported by the Central Bureau of Statistics (CBS).
Interestingly, 1,500 previously issued permits were also revoked during the same period. This means that for those homes, construction will not continue. Permits can be revoked if they were granted improperly, if construction plans deviate from the permit, or if environmental regulations and objections from local residents get in the way.
Revival over
After a brief upturn in 2024, the number of permits is declining again this year. With this, the expansion of the housing stock lags behind the persistently high demand. Experts point, among other things, to the new tax measures for the rental market introduced by the previous administration. Higher taxes have made it less attractive for investors to invest in rental housing.
Fewer completions
The number of new homes completed also fell. In the second quarter, 16,000 homes were completed, 1,100 fewer than a year earlier. This further increases the pressure on the housing market.
Growth in construction sales
Remarkably, the construction industry is not in the doldrums financially. Sales of construction companies were more than 5 percent higher in April, May and June than in the same months of 2024. It is the fifth quarter in a row that the sector has recorded growth.
