Germany Faces Housing Crisis as Ownership Rates Decline

Rising rents, limited housing supply, and falling homeownership rates highlight growing affordability challenges and risks of housing insecurity.

Germany's homeownership rate has dropped to 43.6%, the lowest in 15 years, with affordability cited as a key barrier for average earners.
Rising rents, particularly in cities, are increasingly pushing older renters toward financial insecurity and contributing to a rise in housing insecurity and homelessness.
A new OECD toolkit emphasizes strategies like 'Housing First' and preventive measures to combat homelessness, with mixed results in pilot cities across Germany, Austria, and Switzerland.
Experts call for state-led initiatives, including reduced property taxes and low-interest loans, to make homeownership more accessible and stabilize the housing market.
The Pestel Institute's study warns that without significant policy intervention, Germany risks deepening social inequality and exacerbating housing shortages.