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IWU Study Finds One Third of German Renters Overburdened by Housing Costs

The result has increased pressure on the government to enforce rent limits, expand social housing, step up sanctions against illegal price hikes.

Overview

  • The Institut Wohnen und Umwelt (IWU), reporting for the Deutscher Mieterbund, estimates about 6.6 million of roughly 20 million renter households are overburdened with housing costs using a more than 30 percent-of-net-income threshold.
  • The IWU breakdown shows about 3.2 million renter households spend over 40 percent of net income on rent and heating while a further 3.4 million spend 30–40 percent.
  • Official statistics from Destatis use a stricter 40 percent threshold and broader population measures and therefore report a much smaller share of people as overburdened, which has split public debate over how to measure the problem.
  • The burden falls heaviest on low-income renters, with 42 percent of renter households in the bottom third of income and the bottom 10 percent facing an average housing cost share near 60 percent.
  • The Deutscher Mieterbund called the numbers alarmingly high and demanded immediate action including tighter and nationwide rent caps, stronger enforcement and fines, and a rapid increase in social and public housing to ease shortages that also risk slowing economic mobility.