Rising Housing Costs Propel More Germans into Poverty

A recent study by the Paritätischer Gesamtverband reveals a concerning rise in poverty levels in Germany, largely driven by escalating housing costs. The report finds that 17.5 million people, over one-fifth of the population, live in poverty when housing expenses are taken into account. This figure represents 5.4 million more than traditional statistics suggest, highlighting the significant impact of housing on financial well-being.

The study defines poverty as having less than 60% of the median income. However, it emphasizes that many households spend over a third, and some even more than half, of their income on housing costs. When these expenses are deducted, approximately 21.2% of the population falls below the poverty line.

Regions such as Bremen, Saxony-Anhalt, and Hamburg are particularly affected, with more than a quarter of their residents experiencing housing poverty. Vulnerable groups include young adults aged 18 to 25, the elderly over 65, single parents, and those living alone, who are disproportionately impacted. Notably, over half of the unemployed population struggles with housing-related poverty.

The study calls for policy changes to address this growing issue. Paritätischer's CEO, Joachim Rock, stresses the need for better wages, improved social security, and a housing policy that ensures affordable rents. The study, based on data from the 2023 microcensus, acknowledges that it does not account for certain groups like the homeless, residents in care facilities, or refugees in communal housing, who are likely also affected by poverty.

With rent prices continuing to rise and wages lagging, addressing housing costs is critical to reducing poverty and ensuring economic security for millions of Germans.