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There was a significant surge of 80% in housing loan approvals.

The amount of households receiving housing allowance witness a significant surge, amounting to an...
The amount of households receiving housing allowance witness a significant surge, amounting to an 80% hike.

There was a significant surge of 80% in housing loan approvals.

Following a legislative change in 2023, the number of German households receiving housing aid saw a substantial boost by 80%.

As per data released by the Federal Statistical Office in Wiesbaden on Monday, this increase amounted to around 1.2 million households, marking a significant jump of 521,700 households compared to the end of 2022. This translates to 2.8% of all private households relying on state support.

The primary reason for this escalation was attributed to the Housing Benefit Plus Act, which took effect in 2023 and broadened the eligibility criteria. Moreover, the monetary value of housing benefit was also increased. By the end of 2023, the average monthly housing benefit claim for solely housing benefit recipients stood at 297 euros per household, an enhancement of 106 euros from the end of 2022. For households receiving a mix of housing benefit, the claim went up to 247 euros, up 70 euros from the previous year. Furthermore, the total expenditure by federal and state governments significantly surged from approximately 1.8 billion euros in 2022 to 4.3 billion euros.

In terms of federal states, private households in Mecklenburg-Vorpommern had the highest reliance on housing benefit at the end of 2023, with 5.5% of households receiving it. Meanwhile, Bavaria had the lowest proportion at 1.6%.

By the end of 2023, around 98% of housing benefit households had all household members eligible for housing benefit. In contrast, around 2% consisted of mixed households, where some members were eligible while others were not.

The substantial boost in housing aid was mainly caused by the implementation of the Housing Benefit Plus Act, which increased the eligibility criteria and monetary value of housing benefit. Due to these changes, the housing budget significantly increased from 1.8 billion euros in 2022 to 4.3 billion euros in 2023.

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