The ruling party plans to offer the country three years of rent relief. This year it has risen to record levels, and housing costs have traditionally been stable enough for families to live in rented housing their entire lives. Of Germany’s 41 million households, just under 60% live in rented housing, according to the German Federal Statistical Office.
Germans also have to deal with rising prices for other goods. Headline consumer price inflation in the year to July reached 6.2%, compared with the EU average of 5.3%. Existing real estate regulations cap rent increases at 20% over three years, or 15% in areas with particularly tight housing markets. The German coalition government has already agreed to lower the ceiling to 11%, but the SDDP believes that this is not enough.