Germany's housing crisis threatens baby boomers as rents soar and pensions lag
Germany faces a growing housing crisis as millions of baby boomers approach retirement. By 2036, roughly 40% of this generation will have left the workforce. Experts warn that high rents and low pensions could push many into financial hardship, particularly in densely populated regions like North Rhine-Westphalia. A recent analysis shows that around 5.1 million retirees will receive less than €800 a month from the state pension. With rents rising, many could struggle to afford basic housing. Currently, over 760,000 pensioners already depend on welfare benefits—about 4.3% of all retirees.
Robert Feiger, head of the IG Bau trade union, has called affordable housing 'the number one social issue'. He argues that expanding housing supply is essential for economic growth and preventing poverty among older adults. Without urgent action, Feiger warns, the situation will worsen. North Rhine-Westphalia, Germany’s most populous state, is expected to bear the brunt of the crisis. Over a million baby boomers there could face housing poverty within the next decade. Feiger stresses that increasing new construction is the only way to ease pressure on both the economy and vulnerable retirees.
The warnings highlight a looming challenge for policymakers and builders. With millions of retirees at risk, the need for affordable housing has become more urgent. Without intervention, rising rents and stagnant pensions could deepen inequality among older Germans in the coming years.
