Germany's housing market crisis is exacerbating social inequality, with newcomers facing severe difficulties in finding affordable accommodation, impacting integration, education, and the labor market.
In Berlin, a 100-square-meter apartment rents for over €4,000 per month, while the cheapest option—80 square meters requiring renovation on the city's outskirts—costs nearly €1,000. Nationwide, there is a shortage of approximately 1.4 million apartments in the lower and middle price ranges.
Germany's population reached 83.5 million in 2025, growing by 3.7 million since 1990 almost entirely due to immigration. The number of single-person households has also risen, but housing supply has not kept pace.
According to the Expert Council on Integration and Migration (SVR), immigrants and those with immigrant backgrounds are disproportionately disadvantaged. They live in smaller, often overcrowded apartments, and homeownership rates are below 33% for immigrants versus over 50% for natives.
SVR chair Winfried Kluth noted that immigrants spend a larger share of income on rent. Discrimination is a key factor: a woman with a Pakistani name was denied a viewing appointment but received one immediately when using German-sounding names. The Federal Court awarded her €3,000 in compensation.
In 2024, about 532,000 people were homeless—more than double the number two years earlier—with 86% of shelter residents holding non-German passports. The council proposes anonymizing the first stage of rental applications to prevent name-based discrimination.
Social segregation is increasing, with the rich and poor living separately. In economically strong regions, jobs are available but housing is unaffordable; in weak regions, housing is cheap but jobs are scarce. This mismatch blocks labor mobility and exacerbates skilled worker shortages.
Nearly 60% of immigrants live in cities, where their share can exceed 40%. The concentration of poverty and immigration in disadvantaged neighborhoods can fuel social tensions, but the council stresses this is not inevitable. Successful integration depends on local infrastructure, education, and social networks.
Researchers recommend expanding social housing construction, targeted support for deprived neighborhoods (e.g., funding for childcare, schools, and social institutions), and urging employers to help international skilled workers secure housing.
Source: www.dw.com