Millions of people in Germany burdened by housing costs | Free Press

Little living space, rising rents, and high property prices. The general housing situation in Germany has worsened in recent weeks and months.

Wiesbaden (dpa): expensive rents and high apartment prices make things difficult for many people in Germany.

In 2019, about 11.4 million people lived in households financially burdened by high housing costs, the Federal Statistical Office said.

That is almost 14 percent of the population. The authority sees a housing cost overburden when a household spends more than 40 percent of disposable income on housing, regardless of whether the person in question is renting or living within their own four walls and paying off a loan, for example.

On average, Germany’s population spent about 26 percent of their disposable household income on rent and ancillary costs or on maintaining their home over the past year, according to Wiesbaden statistics. In 2014, however, the share of housing costs in household disposable income was higher by 27 percent.

The overburden rate has also decreased slightly since 2014. At that time, about 16 percent of the population (12.7 million) spent more than 40 percent of their disposable income on housing. The good economy and booming job market have long boosted incomes, dampening high rental and property prices.

In a comparison of EU countries, people in Germany, where a large number of people rent, are greatly affected by high housing costs. Only in Greece (36.2 percent overload rate), Bulgaria (16 percent) and Denmark (15.6 percent) was the situation most difficult. In the Netherlands and Spain in 2019, less than 10 percent of the population spent more than 40 percent of their disposable income on housing. In Malta and Cyprus, the overload rate was less than three percent.