High rents worsening worker shortage in major German cities

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By Olivia Logan

A recent study from PwC has found that skyrocketing rents in major German cities are making it harder for companies to fill worker shortages. Respondents said that the government and employers should do more to manage the affordable housing crisis.

German rental crisis is worsening worker shortage

76 percent of jobseekers in Germany would reject an offer for a job in a new location if rent in their prospective new city is “much higher” than in the place they already live. This is one of the main findings of a recent study carried out by consultancy firm PwC.

The inverse is also occurring, with some people who are already living in expensive places considering moving due to high rents. According to the study, 10 percent of respondents have changed their job and moved due to high rents. In the 18 to 34-year-old age group, 18 percent have moved due to high rents.

If they haven’t already done it, others are considering moving. 35 percent of respondents said they have considered resigning because of high rents. In the 18 to 34-year-old age group, this figure grew to 43 percent.

“Even companies where every position is currently full can’t afford to rest on their laurels,” said PwC real estate chief Thomas Vieh.

Respondents urge government and employers to tackle crisis

Asked about possible solutions to Germany’s current affordable housing shortage, 90 percent of respondents said the incoming government should do more to manage the crisis.

Upon announcing their coalition agreement, the incoming CDU/CSU-SPD coalition outlined several policies which claim to benefit the 52,3 percent of the German population who are renters

Proposed policies include changing the rental index law, simplifying Nebenkostenabrechnungen (utility bills) and drafting a law within the first 100 days of taking office to “accelerate construction”.

81 percent of respondents believed that employers in Germany should be more involved in reducing the knock-on effects of rising rents, for example, by subsidising their employees' public transport tickets and rents in particularly expensive regions, or properly equipping employees to work from home.

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Olivia Logan

Editor at IamExpat Media

Editor for Germany at IamExpat Media. Olivia first came to Germany in 2013 to work as an Au Pair. Since studying English Literature and German in Scotland, Freiburg and Berlin she has worked as a features journalist and news editor.Read more

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