Leipzig

The housing market in Leipzig, Germany, is experiencing a significant crisis due to rapid population growth and insufficient housing supply. Since 2000, the population has increased by 29%, requiring 80,500 new housing units, but only 58,400 have been built or renovated, leading to a shortage of over 8,333 units by 2040.

Leipzig's vacancy rate has plummeted from 12% in 2011 to 2% today, causing rents to rise significantly, with median monthly rents escalating by 11.1% in 2023. The city is addressing this crisis by updating its housing policy concept to secure affordable housing in all districts. This includes strategic land acquisition, social preservation statutes, and social housing support to increase and improve the housing supply.

To support affordable housing, Leipzig aims to create and maintain affordable living quarters through various initiatives. However, the construction backlog and decline in building permits (-27% in 2023) pose significant challenges. The city's efforts to counteract these trends include promoting social housing and implementing policies to ensure that housing remains affordable for medium-income households.

While specific data on the percentage of renters versus homeowners is not provided, the acute housing shortage and rising rents indicate a high demand for rental properties. Leipzig's efforts to address its housing crisis offer valuable insights for cities seeking to advance affordable and sustainable housing.