Germany hidden housing crisis: Why most Germans don't own homes
Автор: Europe Jotter
Загружено: 2026-01-26
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Germany hidden housing crisis: Why most Germans don't own homes
Germany is often seen as Europe’s strongest economy — a nation of precision engineering, fiscal discipline, and long-term stability. But beneath this polished image lies a quiet contradiction: most Germans don’t own their homes. For decades, Germany built a rental-based housing model designed around stability, not speculation. Strong tenant protections, strict mortgage rules, and limited incentives for homeownership made renting feel permanent — and for a long time, it worked.
Germany avoided the housing bubbles that destabilized other European economies. Rents were predictable, cities socially mixed, and debt kept low. But global conditions changed. Low interest rates, rising population, urban migration, and foreign real estate investment turned housing into an asset rather than shelter. Supply failed to keep up, and rents began rising faster than wages.
Today, Germany’s housing market is under pressure. Young families struggle to find apartments, wealth increasingly concentrates among property owners, and the famous German middle class is shrinking. Strong tenant protections still exist — but only for those already inside the system. Entry has become the real crisis.
This isn’t just a housing issue. It’s an economic story about power, inequality, and structural risk in Europe’s most respected economy — where stability, once a strength, may now be becoming a vulnerability.
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