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Germany’s Rental Crisis Deepens as Bundestag Rejects Anti‑Gouging Bill

The clash over remedies pits stronger tenant protections against a rapid federal push to finance new affordable homes.

Overview

  • Germany’s tenants’ union reports that about six million renters spend over 40% of income on housing, with 52.8% of the population now renting and rising fears of unaffordable costs and eviction.
  • Quality and space shortfalls are growing, with families disproportionately facing overcrowding and roughly 16% of people living with defects such as damp or mold.
  • A study by owners’ group Haus & Grund finds a wide gap between existing and new‑lease rents that locks tenants in place, with post‑move burdens exceeding 40% for singles in cities like Munich, Berlin and Offenbach.
  • Regional analyses from the Pestel‑Institut show large deficits alongside long‑term vacancies, including shortages in Dachau (≈5,200) and Ebersberg (≈4,000), Hamburg (≈25,900) and Neu‑Ulm/Unterallgäu, while annual building needs far exceed current permits.
  • The Bundestag voted 131–440 against The Left’s proposal to toughen enforcement of excessive rents, as tenant groups call for a sharper rent cap and expanded social housing and industry voices urge a federal low‑interest building program near 2% and simpler rules.