Only four percent of German companies plan to offer new employee housing within the next five years, says a study by the German Economic Institute (IW). Currently, about nine percent already provide housing directly for their staff, while another 21 percent offer indirect support such as internal housing exchanges or covering real‑estate broker costs.
The survey shows that 58 percent of employers see employee housing as a way to make recruiting skilled workers easier, and 55 percent report benefits for long‑term retention. Nevertheless, many firms are reluctant to launch new housing initiatives. Two‑thirds cite unfavourable rental conditions as the biggest barrier, nearly 45 percent fear difficulties finding suitable partners in the housing sector, and almost 40 percent consider the financial and organisational effort too high.
IW expert Philipp Deschermeier notes that employee housing can be a decisive location advantage in the competition for qualified talent. For it to work, companies need better information, and local governments should streamline approvals for housing built on company grounds. “When employers, the housing sector, and municipalities work more closely together, everyone benefits: firms secure skilled workers, and the housing market calms down” he explains.
