The alliance 'Soziales Wohnen' has presented the Social Housing Monitor 2026, highlighting an acute shortage of affordable housing in Germany. Currently, around 1.4 million rental apartments are missing, severely affecting students and immigrants. Experts warn of a social disaster that could exacerbate the skilled labor shortage.
The alliance 'Soziales Wohnen', comprising the German Tenants' Association, IG Bauen-Agrar-Umwelt, Caritas Disability Assistance and Psychiatry, the German Society for Masonry and Housing Construction, and the Federal Association of German Building Materials Trade, presented the Social Housing Monitor 2026 on Thursday, based on a study by the Pestel Institute. The report examines the housing market situation, needs, and the status of social housing construction.
According to the Pestel Institute, 75 percent of trainees live with their parents due to a lack of affordable housing. Many students forgo their preferred study locations, which could fuel the skilled labor shortage in the long term, said Matthias Günther, the institute's managing director. Students in their own apartments spend an average of 53 percent of their income on rent. The shortage similarly affects immigrants: 'Workers need housing. If we don't solve this problem, things will look bleak for Germany,' warned Janina Bessenich, federal managing director of Caritas Disability Assistance and Psychiatry. She sees a 'social disaster' emerging that could brake the economy.
To close the gap by 2030, 410,000 apartments must be built annually. In 2024, only 250,000 were constructed, with 210,000 to 230,000 expected for 2025. Overcrowding has increased: In 2015, it affected 5.7 million people; in 2024, 9.6 million (11.5 percent).
The situation is most critical for social housing: Of 23 million rental households, 11 million are eligible, but only one million such units exist, with numbers declining. Income thresholds range from 12,000 to 16,800 euros for singles and 18,000 to 25,200 euros for couples, with allowances for children or disabled persons. Despite tripled funding – from 973.9 million euros in 2020 to 3.5 billion in 2025 – the number of social apartments rose only 32 percent. Günther emphasized this is not solely due to construction costs.
A key issue is delayed payouts: For 2025, only 15 percent flows in the current year, 25 percent in 2026, and 60 percent until 2029. States must prefinance, burdening budgets. Opposition politician Hanna Steinmüller (Greens) criticized: 'Social housing is a bottomless barrel. The federal government's housing policy is missing its targets.' She calls for reforms with permanent social ties and reliable funding.
