sueddeutsche.de
German Housing Affordability Improves Slightly, but Challenges Persist
An ING survey reveals that despite rising wages, 22% of Germans find it difficult to pay housing costs, with renters (26%) more affected than homeowners (12%), reflecting Germany's low homeownership rate (48%) and concerns about future housing affordability.
- What is the current state of housing affordability in Germany, and how has it changed recently?
- A recent ING survey reveals that while increased wages are helping many Germans manage housing costs, 22% still find it difficult or very difficult to pay rent or mortgages, down 4 percentage points from a record high in 2023. This difficulty disproportionately affects renters, with 26% struggling, compared to 12% of mortgage holders.
- Why is the percentage of people struggling with housing costs higher among renters than homeowners?
- The survey highlights Germany's high proportion of renters (52% cannot afford to buy, 7% can but not in their preferred location), contributing to the persistent housing cost challenges. Germany's low homeownership rate (48%), the lowest in the EU, exacerbates this issue, as many renters struggle financially.
- What long-term solutions are needed to address Germany's persistent housing affordability challenges beyond wage increases?
- Rising wages may further reduce the percentage of people with housing cost difficulties in 2025, according to ING economist Sebastian Franke. However, the persistent affordability challenges, particularly for renters, and concerns among parents about their children's future housing prospects indicate a need for long-term solutions beyond wage increases.
Cognitive Concepts
Framing Bias
The article frames the issue of housing affordability primarily through the lens of wage increases and their impact on reducing financial difficulties for renters and homeowners. While this is important, the framing could be improved by giving more balanced attention to the structural issues contributing to housing affordability challenges, and the perspectives of various stakeholders (e.g., landlords, developers). The headline (if there was one) would also play a role here.
Language Bias
The language used is largely neutral and objective, relying on data from the survey. There is no significant use of loaded terms or emotionally charged language. The presentation of statistics is factual.
Bias by Omission
The article focuses on the financial difficulties of renters and homeowners in affording housing costs, but it omits discussion of potential policy solutions or government interventions to address the housing affordability crisis. It also doesn't explore the impact of factors beyond wages, such as rental regulations or housing supply, on housing affordability.
False Dichotomy
The article presents a somewhat false dichotomy by primarily focusing on the contrast between renters and homeowners struggling with housing costs. While acknowledging that some renters choose to rent, it largely frames renting as a consequence of financial limitations, neglecting other reasons for renting.