Berlin’s Housing Crisis Deepens as 530,000 Households Struggle with Rent

Berlin’s rental market is in freefall, pushing families into overcrowded homes and financial despair. Will the Left Party’s proposals finally break the cycle?

, and Administrator

2025 December 5 . 1:17 PM

1 min read

At the bottom of the image there is a road with cars and a bus. Behind them there are buildings... — At the bottom of the image there is a road with cars and a bus. Behind them there are buildings with walls, windows, dish and roofs. And also there are posters and banners to the walls. There is a pole with streetlight.

Berlin’s Housing Crisis Deepens as 530,000 Households Struggle with Rent

The study, presented in 2021 by the Berlin state parliament, reveals stark figures. Some 530,000 households—27 percent of the city—face excessive rent burdens. Meanwhile, 280,000 households live in overcrowded conditions, with one-third sharing fewer rooms than occupants. For those on social benefits, the strain is even worse: 40 percent pay rents above legally defined 'reasonable' limits, costing the state over €100 million yearly in extra support.

The study paints a grim picture of Berlin’s rental market, where rising costs and limited availability push thousands into financial strain. With demand far outstripping supply, the proposed policy changes could reshape how the city allocates affordable homes. Yet without broader intervention, the crisis is likely to persist for many households.