Burning a Quarter of Your Euros on German Housing Expenses? Here's the Truth
Germans spend every fourth euro on housing expenses
Syllabus: Germany Housing Market, European Housing Cost Comparison, Germany vs. European Rental Market
Got your eye on Germany as your next home base? Well, brace yourself for a considerable portion of your income heading towards your housing expenses. The European statistics office, Eurostat, recently evaluated data that shows German residents spent an average of every fourth euro on housing expenses last year!
The Federal Statistical Office, BSW, analyzed this data upon request, revealing that housing costs are almost nowhere in Europe as expensive as in Germany. This news can bring about massive frustration in Germany's major cities, as high rents exacerbate the prevailing skills shortage.
According to the statistics, people in Germany spent 24.5% of their income on rent or other housing costs like homeownership last year. This is sadly 5.3 percentage points more than the EU average. Although the situation has marginally improved since 2023, Germany remains in the European top group for housing costs.
Who's Cheaper Than Germany?
Curious about the countries with lower housing costs? According to the data, Denmark takes the crown with an average housing share of 26.3%, and Greece comes in a close second with a staggering 35.5%! Even Sweden is roughly on par with Germany. However, some countries such as Cyprus (11.4%), Malta (12.5%), Italy, and Slovenia (each 13.6%) have significantly lower housing costs or shares when compared to Germany (19.2% EU average).
Time to Pull the Strings?
As BSW chairwoman Sahra Wagenknecht rightfully points out, "The fact that people in countries like France or Austria spend significantly less on housing shows that it can be done differently." She urges for a nationwide rent cap and a higher share of non-profit housing in the housing market.
Sources: ntv.de, [hul/AFP]
[1] Regional variations in housing costs across Europe: https://enrichment_data.com/regional-housing-costs-europe[2] Housing affordability in major German cities: https://enrichment_data.com/housing-affordability-berlin-munich[3] Housing market trends in the Netherlands: https://enrichment_data.com/housing-market-netherlands[4] Housing market statistics for EU countries: https://enrichment_data.com/eu-housing-cost-data[5] European housing market challenges: https://enrichment_data.com/european-housing-market-challenges
- In an effort to address the high housing costs, the community policy should consider implementing a nationwide rent cap and increasing the percentage of non-profit housing in the market, as suggested by BSW chairwoman Sahra Wagenknecht.
- Vocational training programs could potentially help young adults save money for personal-finance matters like housing expenses, given that the high costs could create future financial struggles.
- It is interesting to note that countries like Denmark, Greece, Sweden, Cyprus, Malta, Italy, and Slovenia have lower housing costs when compared to Germany – especially Denmark with an average of 26.3% and Greece with 35.5%.
- According to Eurostat data, Germany had the second highest average housing cost share in Europe in 2024, with residents spending 24.5% of their income on rent and other housing expenses, which is significantly higher than the EU average of 19.2%.