25.01.2025 11:11
The housing shortage in Germany is one of the biggest obstacles preventing skilled workers from choosing this country. For this reason, many companies have started to build or acquire housing for their employees.
The housing shortage in Germany is one of the biggest obstacles for qualified labor choosing this country. For this reason, many companies have started to build or acquire housing for their employees.
HOUSING ISSUE MAKES IT HARDER TO FIND QUALIFIED PERSONNEL
According to a survey conducted by the international consulting, auditing, and tax services company PricewaterhouseCoopers (PwC) in Germany, four out of five companies believe that the housing problem, especially in large cities, further exacerbates the difficulty of finding qualified personnel. According to the research, finding qualified personnel in sectors such as healthcare, gastronomy, crafts, and similar fields, where salaries are not very high, is becoming much more difficult due to the housing issue.
ONE IN THREE PEOPLE COMPLAINS ABOUT HIGH RENT
Accordingly, in large cities and densely populated areas, one in three workers is considering moving or changing professions due to high rental costs. The German Economic Experts Council, which advises the federal government on economic matters, also reported that the problems caused by the housing shortage have started to negatively affect the "overall development of the German economy" and slow down economic growth. The relevant report emphasized that people cannot move to where job opportunities are because they cannot find housing they can afford to rent or buy.
RENTAL AGREEMENT IS A SIGNIFICANT ADVANTAGE
In Munich, one of the cities with the highest rents in Germany, an average of 25 euros per square meter is charged for new rental agreements, excluding fuel and electricity costs. Bernhard Boeck, the manager of the energy supplier Stadtwerke Munich, stated, "Most of our employees are people employed in the middle and low salary groups, and they cannot afford these rents." For this reason, he mentioned that they have established a department responsible for real estate within the company and that 1,500 housing units have either been purchased or are under construction. Boeck expressed that they aim to increase the number of housing units to 3,000 by 2030, stating, "When we tell a job applicant, 'We are offering you a rental agreement along with your employment contract,' it becomes an advantage for us."
THEY ARE BUILDING HOUSING WITH READY-MADE STRUCTURES
Bernhard Boeck stated that they determine the rental prices of the housing units within the company in collaboration with union representatives based on the employee's salary, saying, "Computer engineers pay more rent than our technical staff." The average rent charged to Stadtwerke Munich's own personnel is 12 euros per square meter. Boeck emphasized that they do not aim to profit from the housing they rent to their employees, stating that it is sufficient for them if the rental income covers the building expenses. However, he noted that this is not easy due to rising construction costs, emphasizing that they are trying to keep costs as low as possible by using ready-made building materials and minimizing expenses.
COMPANY HOUSING HAS EXISTED SINCE THE 19TH CENTURY
Providing housing for employees by the employing company is an old tradition in Germany that began in the 19th century with industrialization. The world-famous German steel producer Krupp built thousands of apartments and houses to meet the growing labor demand and to bind employees to the company in the long term. Many other companies followed the same path. New residential areas emerged with housing built for workers in the mining sector, postal services, railways, and many other fields. These areas not only provided affordable housing for workers but also helped foster a sense of community among employees. By the end of the 20th century, when the housing shortage had largely disappeared and the labor force was abundant, these practices came to an end, and companies began to sell their housing units.
HOUSING ISSUE IS ONE OF THE MAIN AGENDA ITEMS
Today, the situation has completely changed. "The housing issue has become one of the main problems of the economy in central Germany," said Rolf Bösinger, Deputy Minister of the German Ministry of Construction, noting that just ten years ago, foreign investors looking to establish businesses in Germany primarily researched nurseries and schools, whereas today the first question asked is, "Where will our employees stay?" In 2021, the coalition government formed by the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP) aimed to build 400,000 new housing units annually across the country. However, the sudden astronomical rise in energy and material prices, along with inflation, has drastically increased construction costs. In 2022, a total of 295,300 housing units were built across Germany, and in 2023, 294,400 units were completed. According to data from the real estate sector, there is currently a need for 800,000 housing units in Germany.
ARE COMPANY HOUSING SOLUTIONS MAKING THE PROBLEM WORSE?
According to some politicians pondering the housing issue, which has become one of the problems Germany urgently needs to solve, the construction of new housing by companies for their employees instead of purchasing or renting ready-made buildings may further decrease housing supply, thereby exacerbating the negativity in the real estate market.
Another concern is the possibility of social jealousy arising among different segments of society. Indeed, one in two companies reserves their housing primarily for qualified personnel brought in from abroad. The German Trade Union Confederation (DGB) argues that companies considering establishing new production or administrative centers should first be required to build housing for their staff.
Bernhard Boeck believes that such a generalization cannot solve the problem. "The main issue is money. The state should provide much more targeted support," Boeck stated, adding that state and municipal administrations also have responsibilities, and if they open up their available land for development, at least part of the problem could be alleviated.