Germany is the largest European country in terms of population, with 83 million inhabitants as of 2019. The majority of its building stock consists of residential buildings. Germany’s residential building stock is comprised of approximately 18,8 million buildings, with the considerable majority (83%) being single and two-family buildings and only 17% being multi-family buildings. However, there are more residential units in multi-family buildings (21,5 million) than in single and two-family buildings (18,8 million). Ownership structures of residential buildings are relatively diverse, ranging from private owners to owner associations, municipal housing companies and private housing companies. 

Germany’s overall long-term political goals include a 55% reduction of greenhouse gas emissions by 2030 and a reduction of 80% by 2050. The buildings sector is considered key for this development and should be almost climate-neutral by 2050.

The regulation of the residential building renovation market dates back to the 1970s, with the First Thermal Insulation Ordinance being adopted in 1977. Since then, the regulatory framework has continuously become more comprehensive, including for instance the Renewable Energies Act (2009) and the Energy Saving Ordinance (2014/2019). Recently, these regulations have been merged in the Building Energy Act (2019).