Growing shortage of affordable housing in Berlin

A recent analysis has revealed that apartments in Berlin are quickly becoming more and more expensive, leading to a shortage of affordable housing.

Living in Berlin is getting more expensive

A recent analysis by data analysis company realxdata has revealed that, compared with seven other major cities, Berlin is facing a significant shortage of affordable housing. According to the data, 12 out of the 13 districts with the highest negative change (rents that are more than 30 percent of the average net income) are in the capital.

For example, back in 2015, an apartment of 44,7 square metres was considered affordable housing in the district of Alt-Treptow. However, the same rent would only get you an apartment of 27 square metres now. The biggest changes could be found in the districts of Charlottenburg, Friedrichshain, Gesundbrunnen, Hansaviertel, Karow, Kreuzberg, Mitte, Moabit, Tiergarten, Rudow and Wilhelmstad. In City West, the affordable living area has fallen from 49 to 32 metres squared.

Huge difference between Berlin and other big cities in Germany

Nationwide, across all of the big German cities, only 60 districts had an affordable housing shortage in the period between 2013 and 2017. However, in the period between 2015 and 2019, this number more than doubled to 144 districts.

"The big difference in price increases between Berlin and the other big cities is enormous," says Titus Albrecht, CEO of realxdata. “However, Berlin started from a low-price level and the influx of people into very popular Berlin neighbourhoods continues. That drives up the prices.”