High housing costs push over 17 million Germans into poverty
The number of people living in poverty in Germany is rising as a result of high housing costs. According to research by the Paritätischer Gesamtverband, a total of 17.5 million people are affected by poverty, which constitutes 21.2 per cent of the country's population. The issue particularly impacts young adults and the elderly.
As reported by "Deutsche Welle," studies from the Paritätischer Gesamtverband indicate that up to 17.5 million people in Germany live in poverty. This accounts for more than one in five individuals in the nation. Housing poverty affects 21.2 per cent of the populace, meaning that after paying rent and energy bills, they have little left for daily expenses.
Rising poverty in Germany
As stated in "DW," people are classified as poor when their disposable income is less than 60 per cent of the median average income. Current data indicates that nearly 12 million individuals, or 14.4 per cent of Germany’s population, fall below this threshold. However, the study's authors noted that this analysis does not account for how much money actually remains for them to cover daily expenses.
The so-called housing poverty, however, takes into account the actual disposable income after deducting all housing rental and electricity costs. This results in over a fifth of Germany’s population being affected.
High housing costs drive poverty
High housing costs are the main factor driving poverty. Joachim Rock from the Paritätischer Gesamtverband emphasises that better wages and a housing policy that keeps rents at an affordable level are necessary. In Bremen, Saxony-Anhalt, and Hamburg, more than one in four people live in housing poverty.
The most affected are young people aged 18-25 and the elderly over 65. The high poverty rate also concerns single parents and those living alone. The research does not include the homeless and refugees, which may underrepresent the true state of affairs. The data comes from the Federal Statistical Office's microcensus from 2023.
