Topic analysis

Study: Immigrants disadvantaged in German housing market

The German housing market crisis is deepening social inequality. Newcomers in particular are struggling to find affordable housing — with consequences for integration, education, and the labor market. Finding a rental apartment with three or four rooms in Berlin ? No problem for top earners. In May 2026, a major rental platform is listing a unit of just over 100 square meters (1,076 square feet) for just over €4,000 ($4,680) per month, including heating and other additional costs. The lowest offer is just under €1,000 for 80 square meters — but that unit requires renovations and is located on the outskirts of the city. Renters are currently finding it almost impossible to find an attractive and affordable apartment in a good location in large parts of Germany. This is especially true both in metropolitan areas and in economically strong rural regions. Across the nation, there's a shortage of around 1.4 million apartments in the lower and middle price ranges, and this limited availability, combined with high demand, is driving prices up. In 2025, Germany's population stood at around 83.5 million. Since 1990, it has grown by 3.7 million — a rise driven almost entirely by immigration. At the same time, the number of single-person households has increased. Yet the housing supply has not kept pace with these developments. More than half of Germany's population lives in rental housing. Tenant‑protection laws safeguard existing contracts relatively well, but the situation is different when it comes to new rentals. According to the latest annual report by the Expert Council on Integration and Migration (SVR) , immigrants and people of immigrant background are disproportionately disadvantaged in this process. The nine-member council is devoting its work this year to the topic "Room for Development: Housing and Participation in an Immigration Society." SVR chair Winfried Kluth, migration researcher and professor of public law at Halle‑Wittenberg University, explained during the report's presentation in Berlin that the data evaluated by the Expert Council revealed stark differences between those with and without immigrant background. Newcomers often live in smaller — and frequently overcrowded — apartments, and they are far less likely to be homeowners. More than 50% of people with no migration history live in owner-occupied housing, compared with less than 33% of those with one. Newcomers to Germany also have to devote a larger share of their income to rent. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video These challenges are compounded by structural disadvantages: Lower incomes and larger household sizes are key factors. But migration‑specific hurdles also play a role, as insecure residency status, weak social networks, and language barriers make finding housing even harder. Refugees in particular tend to move into socially disadvantaged neighborhoods , where rents tend to be lower or where support networks might already exist. At the same time, many asylum-seekers remain in state-run accommodations for lack of alternatives — even though they are legally permitted to move out. Discrimination is another disadvantage people with a migration history face in the housing market, said deputy SVR chair Birgit Glorius: "Including racial discrimination, as studies have shown." In early 2026, Germany's Federal Court of Justice ruled that a woman who had been denied a viewing appointment for an apartment because of her Pakistani name was entitled to €3,000 in compensation. Born in Germany, she had initially been turned away. To document the discrimination, she contacted the agent again using various German‑sounding names — and immediately received appointments. The woman from Hesse thereby showed she had been treated differently solely on the basis of her name. To counteract discrimination in the housing search, the Expert Council proposes anonymizing the first stage of the application process — typically the request for a viewing appointment. This, they argue, would prevent applicants from being filtered out based on their names or other personal details. Under current conditions, an increasing number of people are unable to secure their own accommodation. According to the Expert Council, this disproportionately affects non-German citizens. In 2024, around 532,000 people were unhoused — more than double the number two years earlier. Among those housed in shelters, 86% did not hold a German passport. According to the report, immigrants in Germany and their descendants are more evenly spread across the country than in many other countries. "However, social segregation has increased — that is, the clustering of people from specific income groups," said SVR chair Kluth. "The rich and the poor tend to live among themselves," he said. "This is also linked to increased immigration into poorer neighborhoods and municipalities, because newly arrived immigrants are, on average, economically worse off — especially in the initial period after their arrival." Poverty and immigration are becoming increasingly intertwined. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video That has consequences — both socially and economically. In economically strong regions, jobs are available, yet affordable housing is scarce. In structurally weak regions, by contrast, housing is cheaper, but there is a lack of jobs and training opportunities. That mismatch acts like a blockade: People cannot move to where work is available, and employers cannot find skilled workers because those individuals cannot secure housing. "International specialists now says support to secure housing is an urgent need," Kluth said. Immigration is heavily concentrated in cities. Almost 60% of people of immigrant background live in urban areas. In major cities, their share of the population can exceed 40%. When poverty and immigration overlap in disadvantaged neighborhoods, social tensions can arise. However, the Expert Council stressed, that is not inevitable. Neighborhoods with a high proportion of immigrants are not inherently detrimental to integration. What matters most for successful integration are factors such as local infrastructure, educational opportunities and social networks. Yet there is often a lack of these — with serious consequences, especially for young people. Where they live can play a huge role in their futures, as is particularly visible in the school system: Children and adolescents with an immigrant background more often attend schools where they are largely among themselves, and these schools tend to be less well-equipped. That further limits their chances for advancement. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video In the report, the researchers recommend expanding the housing supply, particularly in the area of social housing. Neighborhoods with special support needs should be strengthened in a targeted way — for example, through better funding for childcare centers, schools and social institutions. Employers are also called upon to take responsibility, by actively helping international skilled workers secure housing, for instance, or by cooperating with property companies or participating in housing projects. This article has been translated from German.