German tenants fear they can no longer afford their rent

For many tenants in Germany, the fear is not simply that rent will rise. It is that, if they have to leave, there may be nowhere affordable to go.

A 2026 rent report from the German Tenants’ Association, based on a Forsa survey, found that one in two tenants feared they would not be able to find an affordable replacement apartment if necessary. Twenty-nine percent worried they would eventually be unable to pay their rent, while 58% said rent and additional housing costs had increased over the previous 12 months.

Melanie Weber-Moritz, president of the association, said the rent crisis had become entrenched. Many tenants, she said, live with the fear of losing their homes and are even reluctant to assert their rights, including seeking a rent reduction when landlords breach rent-control rules.

Germany’s rent cap applies only in areas classified as tight housing markets. In those places, the initial rent for a re-let generally cannot exceed the local reference rent by more than 10%. The rules include exceptions for newly built homes, extensively modernized properties, older contracts and short-term leases.

The pressure is forcing households to cut other spending. The association said 52% of tenants were putting less money toward retirement, while 25% were spending less on healthy food. One in four renting households had only a limited financial cushion if they lost work, separated from a partner or developed a long-term illness. Ten percent could pay rent for less than a month if household net income suddenly fell by 40%.

In 2025, 11.2% of Germany’s population spent more than 40% of disposable income on housing, the third-highest share in the European Union after Greece and Denmark, compared with an EU average of 7.7%. The association welcomed tighter rental-law measures approved by Germany’s cabinet in April but said they did not go far enough. Weber-Moritz called for a nationwide temporary freeze on rent increases and penalties for excessive rents or violations. A government draft containing stricter rules for renting existing apartments is awaiting Bundestag review.

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the welfare-state crisis