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Germany’s Poverty Rate Jumps to 22.3% When Housing Costs Are Counted

Using post‑rent income, a new Paritätische analysis reframes hardship, fueling calls for stronger tenant protections.

Overview

  • Paritätische’s housing‑cost‑adjusted method counts 18.4 million people as poor in 2024—5.4 million more than conventional measures that ignore rents and utilities.
  • The approach recalculates median income after deducting housing costs, aligning with Destatis EVS data showing low‑income households spent 64% of consumption on housing and food in 2023.
  • Young adults up to 25, people 65 and older, single parents, and large families are disproportionately affected, with rates around 29–31% for several of these groups.
  • Bremen records the highest housing‑adjusted poverty rate at 33.4%, while Berlin stands at 24.6% and Brandenburg at 21.6%, compared with lower shares in Bavaria.
  • Policy debate intensifies as the government cites expanded housing benefit coverage of about 1.2 million households and planned social‑housing investment, while advocates push for tighter rent limits, eviction safeguards, and targeted relief such as a reported €1,800 Wohngeld income disregard for certain disability or care cases.