Vonovia Stock: New Construction Preferred!
Germany’s housing crisis remains a pressing issue, with high demand and limited supply pushing up costs. Vonovia, one of the country’s largest property firms, has warned that political decisions in 2026 could determine whether its stock recovers. The company’s future growth may hinge on new construction—but rising expenses have made many projects financially risky.
The federal government announced measures to boost residential construction on 27 November 2025. These policies aim to tackle the severe housing shortage, which has left many struggling to find affordable homes. Yet, despite the push for new builds, industry leaders argue that soaring material and labour costs have stalled progress.
Vonovia has so far held back on large-scale construction due to unfavourable market conditions. However, if the company ramps up its building activity, analysts suggest it could see major financial gains. Ruth Werhahn, Vonovia’s head of HR, has stressed that new housing is the only real solution to the crisis.
While Werhahn backed government efforts to prevent rent gouging, she criticised blanket rent controls as ‘blunt’ and ineffective. Instead, she called for targeted support to protect lower-income tenants. The company’s cautious approach reflects broader industry concerns about profitability in an increasingly expensive market.
Vonovia’s stock performance in 2026 will likely depend on how political decisions shape the housing sector. If construction becomes more viable, the company could expand its portfolio and strengthen its position. For now, the focus remains on balancing financial risks with the urgent need for new homes.
