Berlin

1. Underground Bunkers: During the Cold War, Berlin was home to a vast network of underground bunkers that were built to protect citizens from potential nuclear attacks. Some of these bunkers have been restored and can be visited today, offering a glimpse into the city's history during a tense period. 2. Currywurst Origins: The iconic Berlin street food, currywurst, was invented in the city in 1949. The dish consists of a steamed and fried sausage, topped with a spiced ketchup and curry powder. It has since become a symbol of Berlin's culinary culture, with numerous stands and restaurants serving their own variations. 3. Spree River Islands: Berlin boasts several islands along the Spree River, many of which are lesser-known to locals and tourists alike. One notable example is the Museum Island, home to five internationally significant museums, while others, like Treptower Park Island, offer serene spaces for relaxation and leisure amidst the urban landscape.

Berlin remains a predominantly renters’ city, with about 82.6% of households renting their home and only 17.4% owning, according to the most recent official figures. The rental market is highly strained, with high demand and limited supply. The average asking rent across Berlin is about 7.67 euros per square meter for existing leases, though current offers for new leases in prime districts such as Mitte are around 23.55 euros per square meter, and even higher for new-build apartments, reaching up to 32 euros per square meter. Median purchase prices to buy an apartment have continued rising, at a slower pace than previous years. As of early 2025, the median price per square meter for purchasing an apartment in Berlin is estimated to be around 5,200–5,500 euros, with some central districts being significantly higher. Publicly owned housing plays a critical role in providing more affordable units and stabilizing prices. Berlin’s municipal housing companies own about 15% of the city’s rental stock, equating to around 350,000 apartments. Public housing is not identical to social housing: public housing refers to apartments owned by state companies, offering regulated rents but open to most residents, while social housing (Sozialwohnungen) is specifically subsidized and reserved for those with lower incomes, subject to eligibility conditions. Both are integral to efforts to mitigate the acute housing shortage but serve different populations and regulatory frameworks.

Berlin faces a severe and escalating housing crisis, marked by a chronic shortage of apartments, surging rents, and insufficient new construction. Between 2014 and 2024, existing rents in Berlin increased by over 25%, and average asking rents soared by more than 70%. The gap between newly offered rents and those for existing leases has widened dramatically, with average asking rents in 2024 reaching 15.74 euros per square meter, nearly double the local comparative rent for existing contracts. In some central districts, asking rents for new or newly built apartments are even higher. The city’s population grew by more than 300,000 over the past decade, intensifying competition for housing. Berlin’s construction pace has lagged far behind the necessary levels: the city aims for 20,000 new units per year but has consistently fallen short, completing only about 16,000 in 2023 and likely fewer in 2024 and 2025. Meanwhile, the backlog of approved but unbuilt projects remains high. Low-income earners and those below the poverty line are particularly affected, with fewer than 60% of existing units affordable for low-income households and just 25% affordable for those at or below 60% of the national median income. Young professionals, students, refugees, and single-person households are especially vulnerable, facing fierce competition and unaffordable rents. The scarcity of affordable options is now recognized as one of Berlin’s most pressing social challenges.

Berlin’s city administration is responding to the ongoing affordable and sustainable housing crisis through a multi-pronged strategy that targets new construction, regulation, and innovative partnerships. The city has set a target of at least 222,000 new apartments by 2040, aligning with the goal of 20,000 new units annually to accommodate projected population growth and address current shortages. However, actual completions remain below target in recent years. Key programs include the expansion of public and subsidized housing, with Berlin’s six municipal housing companies prioritizing the construction and acquisition of affordable rental units for a broad segment of residents. A notable recent measure is the intensified development of mixed-income housing projects supported by substantial government subsidies. Publicly owned land is offered first to municipal housing companies, then to cooperatives, ensuring that new projects emphasize affordability and sustainability. The city actively collaborates with cooperatives and non-profits to diversify the housing sector and leverages federal and EU funding for construction and retrofitting. Plans are also underway to develop high-density projects, including new buildings in areas like Tempelhofer Feld—a controversial but potentially high-impact development. Other efforts involve initiatives for sustainable building and energy-efficient retrofitting to boost both environmental and economic sustainability. In summary, Berlin’s administration tackles affordability and sustainability through ambitious construction targets, priority allocation of city land for affordable projects, partnerships with public and cooperative actors, and a focus on both new builds and sustainable renovation. These actions form the backbone of the city’s drive to ease rental strain and secure long-term housing stability.

Housing cooperatives in Berlin play a significant role as providers of affordable, secure, and community-oriented housing. As of 2024, around 31 cooperatives manage more than 107,500 apartments and have over 185,000 members, making cooperatives responsible for about 11% of Berlin’s total housing stock, which equates to nearly 190,000 units. Cooperative housing in Berlin is characterized by democratic management, lifetime occupancy rights, affordable rents, and reinvestment of surpluses into the housing stock, rather than extracting profit. Many cooperatives foster strong social cohesion and offer added community services, such as shared spaces and support for residents. The sector is developing through both established, larger cooperatives and a newer generation of small, often more activist cooperatives aiming to drive expansion. However, cooperatives face challenges including scarce building land, rising construction costs, higher interest rates, and reductions in public subsidies. Despite these hurdles, a coalition of young cooperatives in the city is advocating for the creation of at least 24,000 new cooperative apartments by 2030. To promote cooperative housing, Berlin prioritizes allocating public land first to municipal housing companies and then to cooperatives. The city and federal government have launched improved support programs, such as enhanced funding for cooperative share acquisition and streamlined land allocation procedures. These policy approaches aim to strengthen the cooperative sector, recognizing its centrality to ensuring affordable housing and social stability in Berlin.