Luxembourg needs 6,180 housing units
Luxembourg's population growth in 2022 was 15,412. Most of them are foreigners. Net migration reached a figure of 14,206 (31,433 arrivals and 17,227 departures). This number of expats requires about 6,180 housing units, given an average household size of 2.3 people.
Some of the arrivals are asylum seekers or temporary protection seekers, so they are in temporary accommodation. However, even taking into account these variables, the average number of housing units under construction falls short of what is needed. According to statistics, between 2012 and 2016, approximately 3,000 housing units were built each year. In recent years, this figure has risen to 4,000 units.
The crisis hitting the construction sector is exacerbating the already difficult situation in the country's real estate market. A recent survey showed that the cost of new construction rose by 2.2% last year.
The good news is that Luxembourg has enough land to build homes for another 371,500 people. The only question is how quickly and efficiently the construction sector will be able to process this land.
