Many homeowners fear they will no longer be able to afford the costs of their property and therefore fear losing it. A recent survey reveals the extent of this concern: 16 percent see their financing as seriously at risk, a figure that rises to 24 percent among low-income families. Increasing interest rate pressure is driving loan repayments to levels that exceed many budgets, while inflation is pushing renovation and construction costs to ever-new heights, rapidly depleting financial reserves. At the same time, property taxes are rising in many municipalities, further increasing the burden. Heating system legislation is forcing numerous owners to install expensive heating systems, often requiring five-figure investments, which further destabilizes their financial situation. Moreover, utility costs continue to rise year after year due to increased utility prices. The survey figures highlight the scale of the problem: millions of people are now facing a future in which their own home is no longer considered a secure refuge in their later years. (bild: 10.12.25)
Property Owners Caught Between Crisis and Loss of Control
A survey of approximately 1,500 people paints a divided picture of a country anxious about its real estate. Many owners are realizing that their financial reality is spiraling out of control. Property taxes are rising in many regions, hitting small households particularly hard. Those with less than €2,500 a month to live on struggle daily for stability, as operating costs and the cost of living climb in tandem. Furthermore, the new heating law is exacerbating the pressure, as it necessitates expensive retrofits that are straining many budgets.
The construction cost crisis is also having a profound impact on all income brackets. The ongoing surge in construction costs is hindering long-term planning and putting a strain on families already living at their limit. Women feel these tensions more often than men, further increasing the pressure in many households.
Young Generation in the Grip of Debt Burden
Young adults, in particular, are looking to the future with concern. One-fifth of 18- to 29-year-olds fear losing their homes because rising living costs and uncertain career prospects leave little room for savings. At the same time, interest rate pressure is increasing, making any real estate financing more difficult. Debt burden, a key element of this development, is hitting young households especially hard.
Furthermore, the regional disparity is significant. There is more anxiety in the west than in the east, even though both regions experience similar structural conditions. Employment offers little protection anymore, as many employees share similar concerns to those without income.
Homeowners are losing their dream of homeownership
VDGN President Jochen Brückmann succinctly summarizes the situation: “Given rising maintenance costs, the fear of losing one’s home has reached the middle class.” This statement underscores the critical nature of the situation.
Only eight percent are still planning to buy or build a home. The pressure from the construction cost crisis is destroying predictable prospects, and rising construction costs are undermining traditional financing models. At the same time, the requirements of the heating law are forcing many families to make investments that overstretch their financial resources. Homeownership, once a goal for broad segments of the population, is slipping out of reach.
Property is losing its protective function in old age
Brückmann also emphasizes: “This is worrying – especially since owning property remains one of the most important forms of retirement provision for many people.” However, rising property taxes, persistent interest rate pressure, expensive renovations, and increasing construction costs are eroding this protection. This threatens many families not only with a burden in the present, but also with a loss of their future security.