What's Driving the Increase
Economy / Finance

What’s Driving the Increase

Housing ancillary costs in Germany have risen above average recently. According to data released Tuesday by the Federal Statistical Office, they were 4.0 percent higher in August 2025 compared to the same month of the previous year. This increase outpaced the overall consumer price increase, which rose by 2.2 percent during the same period. Housing ancillary costs encompass expenses such as water and waste disposal, building cleaning, maintenance of elevators and other associated fees.

Conversely, households have been paying less for household energy. Prices for energy carriers including electricity, gas, heating oil, district heating and solid fuels like wood and coal were 2.3 percent lower in August 2025 compared to August 2024. While energy prices for households experienced a sharp rise, particularly in 2022 during the energy crisis, they remain at a relatively elevated level.

Approximately 4.2 million individuals reported living in households that were in arrears on bills from utility providers, such as electricity or gas suppliers, in 2024. This represents 5.0 percent of the population. This figure is similar to the previous year, where 5.4 percent of the population reported arrears on utility bills in 2023.

Renters faced greater difficulty in meeting these bills. While 3.4 percent of people from owner-occupied households were in arrears on utility bills, the proportion for renter households was significantly higher, at 6.4 percent.

The financial strain extends beyond just covering utility bills. Unexpected expenses, such as the repair or replacement of faulty household appliances, can also pose challenges for many households. Nearly one-third (32.2 percent) of the population lived in households unable to cover unexpected expenses of at least €1,250 from their own financial resources. This proportion is slightly lower than the previous year, when 35.0 percent of the population reported a lack of sufficient financial reserves for unexpected expenses.