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Draft Welfare Overhaul in Germany Would Scrap Housing Grace Period

Social groups warn an immediate relocation rule would deepen housing insecurity given scarce affordable rentals.

Overview

  • The Labor Ministry’s circulating draft would abolish the one-year housing Karenzzeit, requiring immediate moves from flats deemed too costly.
  • The proposal is not yet law and sits within a broader push to tighten sanctions and reshape the benefits system.
  • VdK president Verena Bentele warns of stress, housing loss or homelessness because affordable alternatives are often unavailable or slow to secure.
  • SoVD chief Michaela Engelmeier says a forced move is frequently unrealistic and that partial rent coverage would effectively cut standard benefits.
  • Official data show 215,900 homes were permitted in 2024, a 16.8% drop year over year that underscores the supply shortage.