Why German Companies Are Shying Away from Employee Housing Benefits
Fewer than one in ten German businesses currently provide direct housing for employees. A recent study reveals that even fewer plan to introduce such benefits in the near future. Despite the low uptake, some experts argue that workplace housing could help attract and retain skilled staff. A survey found that only 9% of companies now offer direct accommodation for workers. Another 21% provide indirect support, such as subsidies or partnerships with landlords. Yet, just 4% intend to start offering housing within the next five years.
Many firms point to high costs and bureaucracy as major barriers. Over 40% say the financial and administrative effort is too great, while 45% struggle to find reliable partners in the housing sector. Two-thirds also blame unfavourable rental market conditions for their reluctance.
Philipp Deschermeier, an expert from the IW economic institute, believes clearer guidelines and faster approvals could encourage more businesses to build on-site housing. He argues that such benefits give companies an edge in hiring qualified talent. The survey supports this: 58% of firms say housing support helps with recruitment, and 55% report better long-term staff retention.
A separate 2025 study by the Handwerkskammer Berlin found that over 70% of craft businesses were willing to offer apprentices housing subsidies of up to €200. However, no nationwide or historical data exists to show broader trends in employee housing support. The findings suggest that while employee housing may improve hiring and retention, most companies remain hesitant. High costs, complex regulations, and a difficult rental market continue to limit wider adoption. Without policy changes or stronger incentives, the share of businesses offering such support is unlikely to grow significantly.
