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Declining Apartment Sizes in Germany Signal Shift in Housing Market
The average size of apartments in Germany is expected to decrease in the coming years, marking a reversal of a long-standing growth trend. According to a recent study by the German Institute for Economic Research (DIW), from 1965 to 2024, the typical apartment grew from 69 to 94 square meters—an increase of more than one-third. However, this enlargement trend has now stalled and future apartments may shrink to an average of approximately 88.5 square meters by 2050, which is about six square meters smaller than today [Source 1].
The primary driver behind this contraction is demographic change, notably the rise in single-person households, which have doubled since the 1960s to 41 percent nationwide and reach nearly 50 percent in major cities such as Berlin and Munich. Additionally, a sustained rise in real estate prices since 2010 has contributed to the shift towards smaller living spaces [Source 1][Source 4][Source 6].
Implications of Smaller Apartments for Expats and International Residents in Germany
For expats, international students, and foreign workers, this trend toward smaller apartments has practical implications. The increase in smaller households and the shrinking average apartment size may mean that finding larger rental units becomes more difficult and potentially more expensive relative to space. Conversely, smaller, energy-efficient, and well-designed apartments could become more widely available, aligning with the government’s goals to reduce energy consumption in the housing sector [Source 1][Source 3].
Those planning to rent or buy property in Germany should anticipate higher demand for compact apartments, especially in urban centers where single households dominate. This may lead to increased competition and necessitate quicker decision-making when securing housing. Expats might also consider prioritizing apartments with efficient layouts that optimize limited space and are compliant with energy efficiency standards, which are increasingly important for cost savings on utilities [Source 1][Source 3].
The DIW study recommends focusing on transforming existing larger apartments into smaller units to meet future housing needs, which could open opportunities for renters and investors alike. However, despite the shift, the traditional stock of larger apartments still dominates, and the full market transformation toward smaller flats will evolve over decades [Source 3][Source 5].
To stay informed, expats should follow announcements and changes in housing regulations and planning developments that address these demographic and economic shifts. Awareness of deadlines and application processes for housing assistance programs may also become increasingly relevant given the evolving housing market landscape.
For more detailed insights, the original article is available in German at tagesschau.de [Source 1].
