Soaring housing costs in Germany are pushing more individuals into poverty, with recent research indicating that over 17.5 million people, or 21.1% of the population, struggle financially after accounting for rent and related expenses. The study reveals that traditional poverty measures overlook housing costs, leading to an underestimation of those in poverty. The Paritätischer Gesamtverband calls for government action to create affordable housing and improve social security to effectively address this growing crisis.
Rising Housing Costs Fuel Poverty in Germany
Recent research reveals that soaring rents and associated expenses are pushing an increasing number of individuals in Germany into poverty, surpassing earlier estimates. Housing costs have become a critical factor influencing the overall quality of life for many citizens.
The Impact of Housing on Disposable Income
According to the Paritätischer Gesamtverband’s research center, more than 17.5 million people, or 21.1% of the population, find themselves in the poverty bracket after accounting for rent, additional costs, loan interest, and other financial obligations. Many households allocate over a third of their income to housing expenses, with some spending over half.
The Federal Statistical Office defines those at risk of poverty as individuals earning less than 60% of the median income. As of 2023, approximately 14.3% of the German population, equating to nearly 12 million people, are classified in this vulnerable category.
This study highlights a significant oversight in traditional poverty statistics, which often fail to consider the impact of housing costs. The evaluation states, “Ignoring housing expenses while assessing income leads to an underestimation of the poverty crisis in Germany.” It suggests that the same income level does not guarantee a similar financial situation for everyone.
In fact, the findings indicate that 5.4 million more people are living below the poverty line than previously realized. When housing costs are factored in, over one-fifth of the population is deemed poor, with the threshold for a single-person household set at a disposable income of 1,016 euros per month.
Joachim Rock, Chief Executive, emphasizes, “The determination of standard living is shifting; it’s no longer solely about income levels, but also about how much individuals spend on housing and their remaining disposable income.” This situation illustrates that housing has become a significant contributor to poverty.
The federal government is currently working on extending the rent price brake, yet the challenges persist, particularly for young adults under 25, including students, and seniors over 65. The issue of housing poverty disproportionately affects single individuals, especially those living alone in retirement.
Geographically, housing poverty is most acute in areas like Bremen, Saxony-Anhalt, and Hamburg, while regions such as Baden-Württemberg and Bavaria report lower levels. The stark contrast between traditional poverty rates and those adjusted for housing costs is especially notable in Hamburg and Schleswig-Holstein.
The Paritätischer Gesamtverband urges the next federal government to invest in creating new, permanently affordable housing. “A comprehensive approach to combating poverty in Germany requires fair wages, improved social security, and housing policies that keep rents manageable,” concludes Rock.
This pressing issue was reported by BR24 on December 13, 2024, at 09:05 AM.