Hamburg

1. Historic Underground Tunnels: Beneath Hamburg lies a network of tunnels and bunkers dating back to World War II. These subterranean passages were used for air raid shelters and can be explored through guided tours that provide a glimpse into the city's wartime history. 2. The World’s Largest Model Railway: Hamburg is home to Miniatur Wunderland, the largest model railway exhibition in the world. It features intricately detailed miniature landscapes and cities, drawing visitors from around the globe to experience its ever-expanding displays. 3. A City of Bridges: Hamburg has more bridges than any other city in the world, with over 2,500 of them spanning its many canals and waterways. This unique feature gives the city a distinct character and is often compared to Venice for its extensive network of waterways.

Hamburg’s housing market remains highly competitive due to persistent excess demand, limited new construction, and one of Germany’s lowest vacancy rates (0.5%). Around 60% of Hamburg residents rent their homes, with about 80% of all apartments being rentals, leaving only 20% as owner-occupied. The median rent for existing apartments is now 16.62 euros per square meter, reaching 20.91 euros per square meter for new builds. To purchase, the median price for existing apartments stands at 5,544 euros per square meter, while new apartments have soared to 8,404 euros per square meter. Publicly owned housing, primarily managed by SAGA (Hamburg’s large municipal housing association), plays a crucial role with approximately 140,000 apartments. The waiting time for these affordable units is extremely long—sometimes decades—due to high demand and a vacancy rate of just 0.2%. SAGA focuses on providing low-cost rentals and supplies a significant share of Hamburg's overall stock. In local policy, public housing generally refers to municipally owned units, while social housing specifically means apartments with rent controls and allocation based on social criteria. Not all public housing is social housing, but much of the subsidized affordable segment overlaps. Overall, the acute shortage of affordable homes keeps pressure high on both rental and purchase markets, and further price increases are expected.

Hamburg is experiencing a severe housing crisis marked by extreme supply shortages, skyrocketing prices, and increasing competition for both rental and owner-occupied homes. The city’s population has grown rapidly, rising from approximately 1.85 million in 2021 to about 1.89 million in 2022, with a notable increase in the proportion of residents with an immigrant background, which now stands at nearly 40%. Construction of new housing has not kept pace; the annual number of completed units remains far below the estimated demand of over 10,000 per year, with a record low 1,927 new units finished in 2024. This imbalance has led to a housing deficit of about 90,000 dwellings and a citywide vacancy rate of just 0.5%. In central districts, vacancy rates fall below 0.3%, and available rental units receive dozens of applications within hours of listing. High demand and limited supply have sharply increased both rents and purchase prices. Affordable options are especially scarce, with only 29 available rental flats per 1,000 requests in late 2023. Gentrification in former low-cost districts has exacerbated displacement pressures. The crisis disproportionately affects low-income earners, families, migrants, young professionals, and the elderly, many of whom now spend 40% or more of their income on housing, far above the affordability threshold. Hamburg’s acute shortage of affordable homes has left large segments of the population vulnerable to housing insecurity and rising social inequality.

Hamburg’s city administration is responding to its acute housing crisis with a multi-pronged approach focused on affordability and sustainability. Key policies are coordinated through the “Alliance for Housing” program, which sets an annual target of approving at least 10,000 new housing units, with the share of subsidized, socially controlled housing recently increased from 30% to 35%. This alliance brings together city authorities, housing associations, and social organizations to ensure construction targets are met and allocate a significant proportion to affordable housing. The city has also introduced the “Green Deal” for Hamburg, which seeks to balance new residential construction with environmental concerns by designating 30% of city land as protected space (10% as strict nature reserves and 20% flexible conservation) and mandating ecological compensation for development on greenfield sites. SAGA, Hamburg’s large municipal housing company, remains central by managing and building affordable units, while specific senior-friendly housing initiatives target the city’s growing elderly population. Urban regeneration projects like HafenCity use public tendering to enforce social sustainability and ensure affordable units are integrated. Hamburg’s policies are integrated with its Sustainable Development Goals (SDG) ambitions, and sustainability is anchored in budget and urban planning law. In summary, Hamburg’s current strategy emphasizes construction targets, increased subsidized housing, ecological compensation, social sustainability via public tendering, and dedicated senior housing, all coordinated through multi-stakeholder alliances and cross-sectoral planning.

In Hamburg, housing cooperatives play a significant role in providing affordable housing. About 20% of all rental apartments are owned by cooperatives, making them a crucial part of the city's housing stock. The city supports these cooperatives through various programs, such as the "Baugemeinschaften" program, which offers financial assistance for new constructions and renovations. This includes zinsverbilligte Darlehen and Zuschüsse for projects that meet specific income and size criteria. The city aims to increase the proportion of cooperative housing, recognizing its social and ecological benefits. For instance, the IBA Hamburg project aims for up to 20% of new residential areas to be built by cooperatives, highlighting their importance in community development and sustainability. However, exact numbers on the share of cooperative housing in relation to all housing units are not clearly defined beyond the general proportion of Genossenschaftswohnungen. Overall, Hamburg's cooperative housing sector is developing positively, supported by municipal policies that prioritize affordability and community engagement.