Finding a spacious, affordable rental in many parts of Germany has become nearly impossible — and the squeeze is hitting people with immigrant backgrounds particularly hard. A chronic shortage of lower- and middle-priced housing, rising rents and structural barriers mean newcomers often end up in smaller, overcrowded flats, spend a larger share of their income on rent and are far less likely to own their home.
The context: supply strain and demographic change
Germany’s population was about 83.5 million in 2025, having grown by roughly 3.7 million since 1990, largely because of immigration. Household patterns have also changed: single-person households are more common, but housing supply — especially in affordable bands — has not kept pace. Nationwide there is an estimated shortfall of around 1.4 million apartments in the lower and middle price ranges, and in tight markets this limited availability pushes prices up sharply.
A country of renters
More than half of Germany’s residents live in rented housing. While tenant-protection rules defend many existing contracts, the situation is different for people searching for new rentals. The Expert Council on Integration and Migration (SVR), which focused in 2026 on “Room for Development: Housing and Participation in an Immigration Society,” examined official data and found clear gaps between people with and without migration histories.
Homeownership and housing burden
Homeownership rates differ starkly: more than 50% of people without a migration history live in owner-occupied housing, compared with under 33% of those with a migration background. Newcomers are more likely to occupy smaller or overcrowded units and are usually required to spend a higher proportion of their income on housing costs.
Structural and migration-specific obstacles
A mix of general socio-economic factors and migration-specific hurdles compounds the problem. Lower incomes and larger household sizes increase housing pressure, while insecure residency status, limited social networks and language barriers make searching and applying for rentals harder. Refugees often end up in state-run accommodation or in socially disadvantaged neighborhoods where rents are lower but opportunities and services may be limited.
Discrimination in the rental market
Research and court rulings show discrimination plays a role as well. The SVR highlights racial and other forms of bias in letting practices. In a high-profile ruling in early 2026, Germany’s Federal Court of Justice awarded €3,000 in damages to a woman who had been denied a viewing appointment because of her Pakistani name. She had proven the discrimination by recontacting the agent under German-sounding names and immediately receiving appointments.
Rising homelessness and unequal impacts
The number of people without stable housing has risen sharply. In 2024 roughly 532,000 people were unhoused — more than double the count two years earlier. Non-German citizens are disproportionately affected: among residents of shelters, 86% did not hold a German passport. The crowding of vulnerable groups into specific neighborhoods has increased social segregation, even though immigrants and their descendants are geographically more dispersed across Germany than in many other countries.
Cities, neighborhoods and opportunity
Immigration is concentrated in urban areas: about 60% of people with an immigrant background live in cities, and in large cities their share can exceed 40%. When poverty and immigration overlap in disadvantaged neighborhoods, schools and public services there often lag behind, reducing educational and social mobility for young people. Concentration in under-resourced schools and weaker local infrastructure further limits future opportunities for children from immigrant families.
Economic consequences and a housing–labor mismatch
The lack of affordable housing in economically strong regions creates a mismatch: jobs exist where housing is scarce and affordable housing exists where jobs are few. That blocks labor mobility and makes it harder for employers to recruit international specialists. The SVR stresses that securing housing for international skilled workers has become an urgent need.
Policy options and recommendations
The SVR’s report outlines practical steps to reduce inequality in the housing market:
– Anonymize early stages of rental applications, such as requests for viewing appointments, to prevent applicants being excluded on the basis of names or other personal details.
– Expand social and affordable housing supply to narrow the gap in lower and middle price bands.
– Strengthen neighborhoods with targeted investments in childcare, schools and social institutions to improve integration opportunities and reduce segregation.
– Encourage employers to take responsibility by helping international recruits find housing, partnering with property companies or participating in housing projects.
– Improve support for people with insecure residency status and for refugees who remain in state accommodation despite having the legal right to move.
The SVR argues that interventions should combine increased housing supply with measures that enhance access to services and education, and that actors across government, civil society and the private sector share responsibility for change.
Conclusion
Germany’s housing crisis is not just about empty apartments or rising rents; it intersects with migration and social inequality. Newcomers face a range of interconnected disadvantages — economic, administrative and discriminatory — that limit their housing choices and, in turn, their social and economic prospects. Addressing these gaps will require coordinated policy action to build more affordable homes, reduce discrimination in letting practices and strengthen the services and institutions that make neighborhoods places of opportunity rather than marginalization.