Population in Germany 2019-2023, by housing situation

Most of the German population rented their housing. In 2023, around 37 million people did so, compared to roughly 27.9 million who had their own house. The German real estate market does offer different housing options, but it is also an increasingly tough one for tenants and future homeowners to navigate amid the ongoing recession.

Competitive and expensive

The German housing market showed declining vacancy rates in recent years. Around 2.5 percent of residential units in the country were vacant as of 2022, down from 3.3 percent ten years before. The summary of the housing situation sounds familiar worldwide: fierce competition in urban areas when searching for rentals, with demand far outstripping supply, as well as rising property prices for those considering a house purchase. In fact, in 2023, prices for owner occupied housing had increased by over 57 percent since 2015, based on preliminary figures. House price growth had also overtaken that of rentals the same year.

Somewhere to live

The decision to rent rather than buy may occur for various reasons. Tenants may simply not be ready financially to buy a home, be that a house or apartment, or they would not be considered by a bank for a loan based on their current earnings. They may be pressed for time and hope to find a place to rent quicker, while buying a home is a long-term commitment, leading to different types of costs and legalities. While a decreasing number of people lived in shared apartments in recent years, figures had not changed so much as to rule this type of housing out as a popular option. Shared or not, the average rent prices of residential property in Germany have been going up year after year, both for new buildings and older ones.