Housing costs in Germany are putting more people below the poverty line

A recent study shows that more people are living in poverty in Germany than previously thought due to high rents and costs associated with housing.

The amount of spending on housing

According to an analysis by the German Confederation of Equal Associations of Federal Statistical Office data, many families spend more than a third of their income on housing costs, and some spend more than half.
After deducting rent, housing-related costs, loan interest, and other expenses, the analysis showed that the remaining disposable income for more than 17.5 million people falls within the poverty range.
People in Germany are considered poor if they have less than 60% of the average monthly income.

High housing costs

The union criticized that millions of people remain invisible within the usual poverty statistics because their housing costs are not taken into account.
“Anyone who only looks at income, but not at the fact that the money available to people is constantly shrinking because they have to cover high housing costs, ignores the extent of poverty in Germany,” the association stated in the analysis.
According to the analysis, there are 5.4 million more people living below the poverty line in Germany than previously assumed. Including housing costs, more than 20% of the population is considered poor. According to these calculations, the poverty threshold for a one-person family is 1,016 euros per month.