The findings, commissioned by the corporate foundation of the Bausparkasse Schwäbisch Hall and reported by outlets including the Augsburger Allgemeine, highlight an intensifying housing affordability crisis that leaves even dual-income households struggling to buy homes.
Falling Ownership Rates Put Germany Last in the European Union
Germany sits at the absolute bottom of the EU homeowner rankings, trailing far behind continental neighbors. According to Eurostat and Pestel-Institut data, Poland leads with an ownership rate approaching 90 percent, while France records more than 63 percent. Within Germany, the 43.5 percent ownership rate represents a sharp decline over the past fifteen years, accompanied by a 6.5 percent drop in the house stock between 2010 and 2024. Matthias Günther, head of the Pestel-Institut, noted in the Augsburger Allgemeine that the downward trend stems from soaring construction costs, rising interest rates, and decades of inadequate housing policy. Manufacturing costs for residential buildings have surged by 160 percent since 2000, drastically outpacing a general consumer price inflation rate of 64 percent over the same period.
High Barriers Shut Out Young Buyers and Average Earners
The squeeze hits younger demographics and middle-income earners hardest. Pestel-Institut data reveals that nearly three-quarters of Germans aged 25 to 45 currently live in rented apartments. Market analysts at Datapulse Research, examining microcensus data on behalf of home24, found that single-family home ownership concentrates heavily among individuals earning more than the specified net amount per month—a bracket covering 56 percent of that income tier. Reaching that net monthly income typically requires a specific gross salary in tax bracket 1, or a lower gross threshold in tax bracket 3, while the national average gross income sits at a different benchmark level. Mike Kammann of the Schwäbisch-Hall-Stiftung told the Augsburger Allgemeine that the tumbling ownership rate serves as “an alarm signal that the state can no longer ignore,” noting that even average-earning dual-income couples can no longer clear the financial hurdles required to purchase property.
Policy Failures and the Threat of Old-Age Poverty
Researchers attribute the ongoing housing crunch directly to political decisions, specifically pointing to the abolition of federal property acquisition subsidies such as the Baukindergeld child-rearing home purchase grant in 2021. While recent immigration flows have added pressure to urban housing markets, Matthias Günther emphasized to the Augsburger Allgemeine that structural policy neglect remains the primary driver. Properties in Germany now cost seven to ten times the average annual income, compared to three to five times in countries like Poland, Spain, and Italy, according to data from the Sparkasse financial group. Warning that rising rental expenses threaten to plunge retirees into poverty, Günther called for a dedicated federal homeownership plan aimed at helping a substantial number of households buy homes annually, stating firmly that “old-age poverty is renter poverty.”
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