Millions of people in germany overburdened by housing costs

Expensive rents and high housing prices are a serious problem for many people in germany.

Some 11.4 million people lived in households financially overburdened by high housing costs in 2019, the federal statistical office reported.

That’s just under 14 percent of the population. The authorities consider housing costs to be excessive if a household spends more than 40 percent of its disposable income on housing ? Regardless of whether they rent or live in their own home and are paying off a loan, for example.

On average, people in germany spent around 26 percent of their disposable household income on rent and utilities or home maintenance last year, according to the wiesbaden-based statisticians. In 2014, however, housing costs accounted for a high 27 percent of disposable household income.

The overuse rate has also dropped 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 the long booming labor market have increased incomes, cushioning high rent and real estate prices.

Compared to other EU countries, people in germany, where many live in rented accommodation, are hit hard by high housing costs. Only in greece (36.2 percent), bulgaria (16 percent) and denmark (15.6 percent) was the situation more difficult. In the netherlands and spain, less than 10 percent of the population spent more than 40 percent of their disposable income on housing in 2019. In malta and cyprus, the overload rate was less than three percent.