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Housing Costs Push Germany’s Poverty Rate to 22.3%, Welfare Group Finds

The Paritätische recalculates poverty by applying the 60% threshold to income left after rent and energy, casting housing expenses as a central driver of inequality.

Overview

  • Using the housing‑cost‑adjusted method, 18.4 million people are classified as poor in 2024—about 5.4 million more than conventional measures and up from 21.2% a year earlier.
  • The approach subtracts warm rent, heating and electricity before setting the poverty line, diverging from the federal government’s recent inequality report that did not adopt this metric.
  • Young adults up to 25 (about 31%), people 65 and older (about 29%), single parents, single‑person households and families with three or more children are disproportionately affected.
  • Bremen records the highest housing‑adjusted rate at 33.4%, followed by Saxony‑Anhalt (28%), Hamburg (25.9%) and Berlin (24.6%), with Bavaria (18.1%) and Baden‑Württemberg (19.9%) lower.
  • Official data show households under €1,300 net spend 64% of consumption on food and housing, fueling calls for stronger tenant protections and more social housing as opponents emphasize faster construction.