Many social institutions are unsure if they can afford their premises long-term, and some have already been forced to scale back their services. This critical situation is highlighted by a recent survey conducted by the Federal Working Group for Free Welfare Care (BAGFW), the findings of which were reported by the news portal “T-Online.” The BAGFW polled nearly 700 social service providers by the end of 2025.
The data reveals that over 80 percent of these providers reported that rising rent costs are a significant financial burden. Since 2020, 57 percent of small facilities operating at a single location have encountered rent increases, with one in four sites reporting multiple increases. This financial pressure is often compounded because many contracts include clauses that mandate continuously rising rents.
Furthermore, many institutions complain of insufficient public refinancing. Only about a quarter of the providers have their rental and ancillary costs fully covered by the government, leaving the rest to bear partial or complete financial responsibility. Consequently, the study indicates that rent increases have directly impacted the institutions’ own operating finances. Due to this, the association is demanding that the refinancing of rental and utility costs be legally enshrined.
Rent hikes present major operational challenges for these organizations. Since they are often publicly funded, they cannot simply raise prices, unlike private businesses competing for commercial space. The consequences of these rising costs fall directly on the public they serve: providers noted that high rents have forced them to shorten operating hours, merge groups, or cancel planned projects entirely.
In the foreword to the study, Achim Meyer on the Heyde, President of the BAGFW, stressed that social work requires not only qualified staff and funding, but also stably affordable facilities. He noted that counseling centers, nurseries, and women’s shelters can only fulfill their mission if they have permanent, safe, and affordable premises. The BAGFW is pushing for several measures, including the establishment of a mandatory commercial rent index, better tenant protection for non-profit organizations, and ensuring that cities and municipalities secure essential land for social infrastructure. Meyer concluded that when social institutions are pushed out of their locations, vital community spaces for interaction, consultation, and social stabilization are lost with them.
