Employee Housing in Germany – Growing in Importance but Faced with Persistent Obstacles

Employee housing is not available everywhere, but it is becoming an increasingly important HR instrument. While only just under 10 per cent of the firms surveyed provide accommodation directly, a good fifth assists its staff in finding homes by offering administrative or financial support, for example. More than half of the responding enterprises reports a positive impact of help with housing on the recruitment and long-term retention of skilled workers, while the effects with regard to trainees and students in integrated degree programmes ("Dual Studierende") are smaller but still significant. However, few companies plan to introduce new housing support in the next five years, the main obstacles cited being: an unfavourable regulatory framework for rented accommodation; a lack of potential partners in the housing sector; legal, organisational and fiscal uncertainties; and high administrative costs. In some cases, the provision of employee housing eases the pressure on the general housing market. While the purchase or rental of existing residential property can have a displacement effect, new construction – especially on company premises – genuinely expands the supply of homes. However, such new home building requires transparent regulation, faster planning permission and close collaboration between employers and the housing industry.