Behind Berlin’s Walls: 5 Key Facts About Social Housing in Germany’s Capital
Monday 12th of May 2025
As mentioned in our last Ezine, our Senior Policy, Insight and Innovation Manager, Caritas Charles, will be in Berlin finding out more about the city's Social Housing set up. We will have social media posts, interviews and videos from Caritas during his time there, but as a taster; here are 5 Key Facts about Berlin's Social Housing.
1. Berlin Lost Over 200,000 Social Homes Since the 1990s
Following German reunification and a shift toward market liberalization, Berlin sold off much of its public housing stock to private investors. In 1990, Berlin had over 340,000 social housing units. By 2023, that number had dropped to under 100,000.
The decline was driven by:
• Expiring subsidy agreements (after 15–30 years, homes can revert to market rent),
• Mass privatizations in the 2000s,
• Insufficient new construction.
2. Rent Caps Have Been Tried—and Challenged
In 2020, Berlin introduced a highly publicized rent cap law (“Mietendeckel”), freezing and even lowering rents on around 1.5 million apartments. But the policy was struck down by Germany’s Constitutional Court in 2021, which ruled that rent control is a federal—not state—matter.
Despite the setback, the debate sparked national attention and boosted tenant movements across Germany.
3. Municipal Housing Companies Are Back in Focus
Berlin is reclaiming control. The city owns six state-run housing companies (like Degewo and Howoge) that manage over 330,000 apartments. These companies are now key players in the effort to provide affordable, non-profit-oriented rental housing.
Since 2012, Berlin has also been buying back thousands of homes from private landlords. One example: In 2021, the city repurchased 14,750 apartments from Vonovia and Deutsche Wohnen, two major real estate giants.
4. Social Rent Can Be As Low As €6.50/m²
In social housing under subsidy agreements, rents are typically capped between €6 and €7 per square meter—well below the private market average of around €12–€15/m² in inner-city districts. In UK terms that can be over 50% cheaper than London equivalents.
However, subsidy periods expire, meaning the affordability isn't always permanent. There’s currently a push to extend rent-controlled periods to preserve affordability long-term.
5. Voters Want Radical Change: 2021 Referendum
In a landmark 2021 referendum, 56.4% of Berliners voted to expropriate large landlords (those owning 3,000+ units), including real estate conglomerates like Vonovia. The aim: transfer up to 240,000 apartments into public ownership.
While the vote was non-binding, it sent shockwaves through Europe’s housing market. A formal legal proposal is expected in 2025, showing how tenants’ rights remain a politically potent issue in Berlin.