Joachim Rock, CEO of the Paritätischer Gesamtverband, emphasizes that rising housing costs are increasingly driving poverty and advocates for more ambitious housing policies, including extending the rent control law set to expire in 2025.

The report indicates that young adults under 25 and seniors over 65 are particularly vulnerable to poverty, with poverty rates of 31% and 27.1% respectively in Germany, and highlights the significant impact on single households.

There is a pressing need for a societal rethink, as basic housing has become a luxury while many households grapple with exorbitant living costs amid a shortage of affordable options.

The surge in poverty has resulted in a 50% increase in food bank clients since the onset of the Ukraine war, with 60% of food banks now rationing supplies due to rising living costs outpacing wage and pension increases.

In 2023, approximately 14.3% of the German population, or about 12 million people, were considered at risk of poverty.

Recent statistics reveal that around 283,000 people in Hamburg, or 15% of the population, live in poverty, a figure that escalates to 497,000, or 26.8%, when housing costs are considered.

The adjusted poverty threshold for a single-person household is defined as having less than €1,016 in disposable income per month.

The study highlights that income alone does not determine living standards, as high housing costs significantly affect financial stability.

The ongoing decline in social housing availability and rising rents underscore the urgent need for effective housing policies, such as a temporary nationwide rent cap, which remains a contentious issue.

The Paritätische Gesamtverband has called on the incoming federal government to create new, permanently affordable housing and to implement policies aimed at reducing poverty through improved wages and housing affordability.

Young adults, particularly those in training or at the beginning of their careers, face significant financial struggles, while low pensions are a major contributor to poverty among the elderly.

Current discussions surrounding poverty alleviation often misdirect attention towards welfare debates, neglecting critical issues like tax loopholes exploited by real estate companies.