Munich, Berlin, Cologne, Hamburg: Germany's big cities are extremely attractive due to their good career opportunities, infrastructure and many recreational opportunities. But they have one big problem: high rents.
Anyone looking for affordable housing in a big city in Germany needs, above all, luck. Or a very good income. Nine out of ten specialists surveyed by the consulting company PwC believe that finding affordable housing in megacities is a matter of luck. And eight out of ten employees are of the opinion that only highly paid employees can afford housing in a big German city.
For the purposes of the study "Housing shortage in Germany's big cities and the consequences for the labor market" 4,000 employed people between the ages of 18 and 65 were surveyed. It included 12 German cities with a population of over 500,000: Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Bremen, Düsseldorf, Essen, Hanover, Leipzig, Nuremberg and Stuttgart.
Rental prices in Germany cause dissatisfaction
Despite the differences in rents in large German cities, "there is widespread dissatisfaction with the housing and property market" everywhere, says Bernd Rose, head of PwC's Frankfurt office.
In Germany, 58% of the country's population lives in rented apartments and houses. By comparison: in the Netherlands, only about a third of the population lives in rented accommodation. According to PwC data, rents in Germany have increased by an average of 8.6% since 2020. They are highest in Munich – an average of 22 euros per square meter. Frankfurt am Main (19 euros) and Berlin (18 euros) follow.
High rents exacerbate the problem of labor shortages
Real estate prices are also reflected in the labor market, exacerbating the shortage of qualified workers. 82% of participants in the PwC survey claim that the current housing and rental situation makes it difficult for companies to find and retain staff. In Munich and Berlin, this is confirmed by 88% of respondents.
Around two-thirds of respondents confirmed that their employer is hungry for qualified labor. The shortage of personnel is felt in all areas, and this particularly affects nurses in hospitals and qualified workers. Teachers and other medical personnel, police officers and construction workers, hotel and restaurant workers are also in high demand.
High rents are making people think about changing jobs and the associated change of residence. 44% of respondents know at least one colleague or friend who has changed jobs because of high rents. The survey also shows that one in ten employees has even left their job for this reason, and another third have thought about it. At the same time, young people are ready to change jobs much more often than older people: among 18-34 year-olds, almost one in five has already moved because of high rents, and another 43% are considering such a step.
Experts expect politicians to solve the housing problem in cities. At the same time, the majority of respondents would like employers to pay for travel expenses, rent allowances in particularly expensive regions, offer company housing and cover the costs of home office equipment. For many respondents, remote work is already a mitigating factor: 70% say that working from home allows them to live in more affordable areas.