Across Germany, a growing number of homeowners are finding their properties increasingly burdensome as they age. Millions own fully paid-off homes, often in desirable locations, but identify themselves grappling with significant ongoing costs. Property taxes, maintenance, energy bills and insurance premiums continue to accrue, even as children have moved out, leaving rooms empty.
Despite the financial strain, selling is often an unthinkable option for many. A deep-seated fear of losing their familiar surroundings – neighbors, gardens, and established views – is a powerful deterrent. For many Germans, moving in classic age represents a severing of ties to a lifetime of memories and community, according to recent observations.
This situation is particularly pronounced in a country where homeownership rates lag significantly behind other European nations. In 2022, only 47 percent of German households owned their homes, while nearly 53 percent rented, placing Germany near the bottom of the European Union in terms of homeownership, second only to Switzerland, according to data from Eurostat.
The low rate of homeownership has historical roots, stemming from Germany’s rapid industrialization in the late 19th century. As people migrated from rural areas to burgeoning industrial centers following the Franco-Prussian War and the founding of the German Empire in 1871, the demand for affordable housing surged. This led to the construction of dense, utilitarian rental housing known as “Mietskasernen,” characterized by spartan living conditions and a sense of precarity.
The trend continued after World War II, with a persistent shortage of housing driving up rental costs and making homeownership inaccessible for many. This historical context has created a culture where renting is more common and accepted than in countries like Romania, Slovakia, Croatia, Hungary, and Montenegro, where homeownership rates exceed 90 percent.
The current situation is further complicated by high construction costs in Germany, which contribute to the limited supply of affordable housing. According to the Federal Statistical Office, in 2022, approximately 16.341 million of Germany’s 38.992 million households lived in owner-occupied dwellings, resulting in an overall ownership rate of 41.9 percent. However, ownership rates vary significantly by region, ranging from a high of 48.5 percent in Baden-Württemberg to a low of 15.9 percent in Berlin.
The statistical office notes a break in time series data starting in 2020, making direct comparisons with previous years challenging. The data collected through the Mikrozensus, a sample survey of households, now provides both preliminary and final results, with the 2022 figures representing the final results.
While the desire for homeownership remains strong among many German households, the financial realities and emotional attachments to existing properties are creating a complex situation for an increasing number of aging homeowners.
