The rapid rise in rents in German cities has become a serious obstacle to filling the labor shortage. This is the main conclusion of a PwC study.
Nearly 70% of job seekers refuse to move to cities with significantly higher rents than in their current place of residence.
The problem is becoming systemic. One in ten working Germans has already been forced to change their place of residence due to unaffordable housing costs. Among young professionals aged 18-34, this share reaches 18%, which creates additional risks for the economy, which is losing the most mobile part of the workforce.
Experts note growing anxiety among employers. 35% of the economically active population are seriously considering changing their job due to high housing costs. Among young people, this figure rises to 43%, which calls into question the prospects for filling vacancies in key industries.
Possible solutions
The government and business will have to find urgent solutions to this complex problem. 90% of respondents expect the authorities to take more active measures to regulate the housing market. In response to these demands, the new government coalition has already announced a reform of the rental price legislation and a program for accelerated construction of affordable housing.
The corporate sector must also adapt to the new realities. Most respondents believe that employers should develop compensation mechanisms - from rental subsidies to expanding remote working opportunities. According to PwC experts, without coordinated action by all stakeholders, the housing crisis could become a systemic threat to the country's economic development.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE