Although large panel system-buildings are often considered to be typical of Eastern Bloc countries in the second half of the 20th century, this prefabricated construction method was also used extensively in Western Europe and elsewhere, particularly in public housing (see tower block).
Virtually all new residential buildings since the 1960s were built in this style, as it was a quick and relatively inexpensive way to curb the country's severe housing shortage, which had been caused by wartime bombing raids and the large influx of German refugees from further east.
Today, large panel system-buildings are often no longer desirable, due in part to both their low thermal efficiency, and their rapid deterioration as a result of their vulnerability to damp ingress and their cheap and quick construction methods, while older housing stock has undergone extensive renovation or been replaced with more modern dwelling units.
Since reunification a combination of decreasing population, renovation of older buildings, and construction of modern alternative housing has led to high vacancy rates, with some estimates placing the number of unoccupied units at around a million.
Many large panel system-building apartments were built in giant settlements, often on the edge of cities (such as Marzahn and Hellersdorf in Berlin and Halle-Neustadt), making them inconveniently located.
Berlin-based architect David Chipperfield has suggested that the plain appearance of Plattenbau housing does not promote gentrification, and may be a factor that helps preserve social continuity for local residents and neighborhoods.
Rovaniemi was nearly completely destroyed during World War II and subsequently rebuilt from scratch, with new concrete panel buildings replacing old wooden houses and becoming a symbol of modernization.