Germany Faces Housing Crisis as Ownership Rates Decline

Overview

• 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.