The rising cost of living in Germany is being felt most acutely in one of the most basic areas of daily life: housing. Fresh data from the European statistical office Eurostat, analyzed by Germany’s Federal Statistical Office at the request of the Sahra Wagenknecht Alliance (BSW), reveal that German households are spending an average of 24.5% of their income on rent or housing-related costs. This is significantly above the EU average of 19.2%.
The figures underscore a growing financial strain on citizens, particularly those with lower incomes. People at risk of poverty in Germany are spending an average of 43.8% of their earnings on housing — nearly every second euro.
Germany Among Europe’s Costliest Housing Markets
Compared to many European nations, Germany ranks among the highest in terms of housing costs relative to income. Only Denmark, at 26.3%, and Greece, at a staggering 35.5%, report higher burdens. By contrast, countries like Cyprus (11.4%), Malta (12.5%), and both Italy and Slovenia (13.6%) offer a markedly lower cost of housing.
Even neighboring nations such as France, Austria, and the Netherlands, which also have high living standards, reported housing cost burdens significantly below that of Germany.
Wagenknecht Calls for Structural Housing Reforms
For BSW leader Sahra Wagenknecht, the statistics are cause for urgent political action. “Housing in Germany has become a poverty trap for large parts of the population,” she told AFP. She argues that the differences between Germany and countries like France and Austria prove that more affordable housing is achievable with the right policies.
Wagenknecht advocates for a nationwide rent cap and a strengthened role for non-profit housing providers. Such measures, she asserts, are necessary to bring long-term relief to renters and promote greater social equity.
The Eurostat findings add weight to a growing public debate about housing affordability in Germany. As rent prices continue to rise and vacancy rates shrink in urban centers, pressure is mounting on lawmakers to address what many now consider a housing crisis.
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