Luxembourg's Special Fund for Affordable Housing spent €474 million in 2025, up from €224 million in 2024, its annual report shows. The pipeline reached 5,348 subsidised homes, but critics note delivery still lags a waiting list that has almost doubled since 2021.
Luxembourg attracts highly qualified international workers but loses half of them within five years, with housing costs cited by 66% of newcomers as the top reason to leave, according to the LUXTALENT study. The government is responding with record affordable-housing investment, though most effects lie years away.
Luxembourg's state-backed housing developers sharply increased the number of homes they were building in 2025, the clearest sign yet that a construction slump triggered in 2022 may be easing. The Fonds du logement more than doubled its dwellings under construction to 1,227, and the SNHBM launched a record 473 affordable homes. But STATEC's latest figures show the private new-build market remains frozen, leaving the recovery lopsided and incomplete.
Luxembourg's government says it remains committed to building 6,000 homes a year, but in a written reply to parliament its housing and economy ministers acknowledged they cannot say whether the target is reachable. Output has run far below the goal for decades, permits are falling and the construction sector is shrinking.