Friday, October 23, 2026

Germany: Is There A Housing Shortage Or A Housing Affordability Crisis?

 Well....Germany has a fairly well-documented and persistent affordable housing problem.

You can say factually....it's mostly driven a shortfall in housing supply relative to demand, especially in metro-cities (like Berlin, Bremen, Hamburg, Frankfurt, etc).  If you were talking about small urban areas....like Trier or Worms....it's much less an issue.

Depending on who surveys the issue...most all of the experts agree....there's a million-plus missing apartments in Germany (some might even suggest 2-million).

Housing now (in Germany) requires about 25-percent of disposable income (regarded as one of the highest rates in the EU.

So you end up asking...what groups are 'screwed-over'?  The usual answer....working-class income folks, young people, single parents, and new migrants arriving.

The cherry on this 'cake'?  Rising construction cost....city-driven regulations, marginal development properties, an obvious labor shortage within Germany, and intereest rates.

So I end this with a odd factor....virtually all of the political parties want to participate in the resolution/fix, and the odds of additional 'damage' is great.

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