By the end of 2025, approximately 1.3 million households in Germany received housing benefits (Wohngeld). This represents a 7.2 percent increase, or about 90,000 more households than in the previous year. According to the Federal Statistical Office (Destatis), housing benefits were claimed by 3.2 percent of all private households, up from 3.0 percent at the end of 2024.
Concurrently, state spending on housing benefits rose from 4.689 billion euros to 4.992 billion euros (+6.4 percent). Both the number of benefiting households and the associated expenditures reached their highest levels since the series began in 2005. These increases reflect the mandatory, periodic adjustment of the benefit grant to keep pace with general price and rent developments. Consequently, the average monthly benefit per household increased by 3.1 percent year-over-year, reaching 296 euros by the end of 2025.
Housing benefits are intended to allow low-income households to afford adequate housing. The amount of the benefit depends on income, housing costs, and the number of household members. At the end of 2025, pensioners and retirees were the main income earner in 51 percent of all benefiting households (682,000), with 85 percent of those being single persons. Additionally, 39 percent of the households receiving benefits (519,000) were families with children under the age of 25. Furthermore, 82 percent of all recipients (1.1 million) were primary renters; 10 percent lived in institutions (132,000), while 7 percent owned their homes and received cost allowances rather than rent subsidies (91,000).
Analyzing regional distribution, Schleswig-Holstein saw the highest percentage increase in benefiting households at the end of 2025 (+12.9 percent) compared to the previous year, whereas Berlin recorded the weakest increase at +1.7 percent. Mecklenburg-Vorpommern reported the highest proportional share of benefiting households among all households in Germany (5.8 percent). In contrast, Bavaria accounted for the lowest share, with only 1.9 percent of all households receiving the benefit.
The average benefit amount ranged from 217 euros in Mecklenburg-Vorpommern to 339 euros in Hesse. The size of the benefit is heavily influenced by average rental prices-ranging from 427 euros in Saxony-Anhalt to 656 euros in Baden-Württemberg for pure housing benefit recipients.
Significant differences were observed between East and West Germany regarding demographics. In East Germany, retirees were the main income earner in 63 percent of benefiting households, and 27 percent were families with children under 25. For comparison, in West Germany, 47 percent of benefiting households were headed by retirees, and 43 percent were families with children, a higher proportion attributed to households with two or more children.
Regarding housing owner subsidies (cost allowances), the share among all households was less than 2 percent in Berlin and Hamburg, 14 percent in Saarland, and ranged from 5 percent to 11 percent in the remaining federal states.
