Rent report | Rental market with mold infestation

"The housing crisis has reached the middle class," explained Melanie Weber-Moritz, President of the German Tenants' Association (DMB), at the presentation of the new "Rent Report" in Berlin. According to the report, almost one in three renters fears they will no longer be able to afford their housing. Nearly one in six fears losing their home.

When the rental market experiences a crisis, it affects many people in Germany. "Germany remains the number one nation for renters," says Weber-Moritz. 52.8 percent of people live in rented accommodation – that's 44.1 million people, three million more than five years ago. This makes the country the European leader, with the exception of Switzerland. In Romania, the country with the highest rate of homeownership, only 5.7 percent of the population lives in rented accommodation.

The high proportion of renters has historical roots. Around the turn of the 19th century, large industrial centers emerged, creating a short-term surge in demand for affordable housing. Furthermore, approximately a quarter of the housing stock was destroyed during World War II, and many rental apartments were subsequently built to compensate. The rental rate is currently continuing to rise. This is also related to the widening gap between rich and poor, explains study author Gwendolyn Stilling in an interview with "nd". The trend toward higher rents is particularly evident in the lower income bracket.

"When families are afraid of losing their homes, when young people can no longer find affordable housing, and when pensioners live in mold-infested apartments, this is a social crisis that strikes at the core of our society."

Melanie Weber-Moritz, German Tenants' Association

While the homeownership rate has declined since 2020, the proportion of those living in debt-free homes has increased. "Those who already own property can eventually pay off their debts and keep it. However, acquiring new homeownership is becoming increasingly unattainable for many, especially for poorer households," according to the "Rent Report." In other words, the gap is widening. Currently, around six million renters are extremely overburdened by their housing costs, meaning they spend more than 40 percent of their income on housing.

Weber-Moritz finds it alarming that families with children are particularly affected by overcrowding and structural deficiencies. Around 30 percent of families live in overcrowded apartments, as does almost one in three single parents. According to the EU definition, apartments are considered overcrowded if there is less than one shared living space and private rooms for all household members. Conversely, one in two people in the wealthiest fifth of the population lives in undercrowded apartments. "The problem isn't a general lack of housing, but a lack of affordable housing," says Stilling.

The rent report also identifies a "hidden infrastructure crisis." Even in places where rents are paid, building defects are increasingly common. Sixteen percent of the population lives in apartments with damage such as mold, damp, or defective roofs. "When families fear losing their homes, when young people can no longer find affordable housing, and when pensioners live in mold-infested apartments, this is a social crisis that strikes at the very core of our society," criticizes Weber-Moritz.

With the "construction turbo" initiative, the extension of the rent control law, and the establishment of a tenancy law commission, the federal government, a coalition of the CDU/CSU and SPD, has already taken important steps, according to the president of the German Tenants' Association (DMB). The "construction turbo" is intended to facilitate construction in tight markets by, for example, eliminating the need to submit separate development plans. The rent control law limits rents to a maximum of ten percent above the local comparative rent. However, it contains numerous loopholes, such as indexed rents or furniture surcharges. These must be stopped, the DMB argues.

Furthermore, it is essential to improve tenant protection, increase the stock of social housing, align housing policy with the common good , and consistently punish exorbitant rents . "Exorbitant rents are organized rip-offs at the expense of tenants. What Vonovia and other companies are doing here is organized rental crime. Criminal landlords are extortionists and must therefore be prosecuted and punished more severely," demanded Jan van Aken, co-chair of the Left Party, in response to the "Rent Report." "We see a structural failure of both the market and politics here," criticizes Weber-Moritz. "The market alone will not solve this crisis."