Berlin’s housing crisis worsens as rents outpace incomes for 530,000 households

A new study calls Berlin’s housing market a full-blown emergency. Why are rents still climbing despite a construction boom—and who’s being left behind?

, and Administrator

2025 December 4 . 4:01 PM

1 min read

In this picture I can see there are few buildings and it has doors and windows. There are few... — In this picture I can see there are few buildings and it has doors and windows. There are few precaution boards attached to the poles and the sky is clear.

Berlin’s housing crisis worsens as rents outpace incomes for 530,000 households

Berlin’s housing crisis has deepened, with over half a million households now spending more than 30 percent of their income on rent. A new study commissioned by the Left Party labels the situation a full-blown 'housing emergency', driven by soaring costs and a severe shortage of affordable apartments. The findings highlight systemic failures in the city’s approach to social housing, as rents continue to climb despite recent construction efforts.

Since 2015, Berlin’s construction boom has nearly matched population growth, yet rents have surged alongside the rise in new builds. Three-quarters of rental listings now fall into the highest price bracket, offering little relief for low- and middle-income residents. Meanwhile, 27 percent of households—over 530,000—exceed the affordability threshold, while 15 percent live in overcrowded conditions.

The Left Party’s study paints a grim picture of Berlin’s apartment market, where high rents and limited affordability push thousands into financial strain. Without significant policy changes, the gap between available housing and actual need is set to widen. The proposed reforms aim to ease pressure, but their success hinges on broader systemic shifts in how the city manages its housing stock.