Germany's homeownership rate hits post-2005 low, lagging behind EU peers

Data from the Pestel Institute show that Germany’s homeownership ratio has slipped to its lowest point since 2005, leaving less than half of private households in owner-occupied dwellings. Institute head Matthias Günther attributes the drop to soaring building expenses, climbing mortgage rates and a lack of effective nationwide ownership incentives. Even households with two earners and median incomes find it difficult to buy, while almost three-quarters of people aged 25-45 remain renters.

Günther also points to immigration pressure on the housing market and the disappearance of a robust federal ownership-promotion scheme as contributing factors. One outlet coalition’s 2025 agreement includes a “starter aid” for families and tweaks to KfW loan programmes, but early figures show no rebound in ownership rates. He calls for a federal plan aiming to place at least 200,000 households into owner-occupied homes each year.