SAEDNEWS: One in Three Renter Households in Germany Are Overburdened by Housing Costs, Study Finds
According to Saednews, A study by the Institute for Housing and Environment (IWU) found that around 6.6 million renter households in Germany spend more than 30% of their net income on rent and heating, including 3.2 million households that spend more than 40%, according to dpa.
Germany has nearly 20 million renter households, and about 42% of them belong to the lowest third of the income distribution. Their average monthly net household income is around €1,417 ($1,648). The study concluded that this group is at its “financial limit” due to housing costs.
Among the lowest-income 10%, households spend an average of 60% of their income on housing.
A tenants’ association described the findings as alarming and urged the government to strengthen protections against excessive rent increases.
However, Germany’s Federal Statistical Office presents a less severe picture. Based on European statistical data, it estimated that 11.2% of people in Germany—about one in nine—were overburdened by housing costs in 2025. It defines overburdened households as those spending more than 40% of their income on housing.
The study identified rising rents as a key factor behind the growing burden, especially for people who have moved into new housing in recent years. Rental contracts signed since 2020 are, on average, more than 20% more expensive than older ones.
The gap is particularly visible in major cities. New tenants in Berlin pay about 29% higher rents than the average across all contracts, compared with 26% in Munich and 25% in Frankfurt. As a result, many tenants with older, more affordable leases are reluctant to move, effectively reducing housing market mobility.
The tenants’ association is calling for stricter rent controls, stronger enforcement against excessive rent increases, and a major expansion of social housing to improve affordability.
