Free housing for workers. Work in Germany. To address the shortage of skilled workers, many German companies are offering accommodation to attract employees. There is high demand for bus drivers, electricians, solar panel installers, and IT specialists. In cities like Munich, where housing is expensive, some employers are renting or even building apartments for their workers.
Housing: A key factor in hiring
Companies like Stadtwerke München are hiring hundreds of specialists, from technicians to IT experts, and offering housing to ease the rental crisis—especially in cities like Munich. A PwC study reveals that 80% of German companies see the housing shortage as a major hiring challenge, particularly in lower-wage sectors like healthcare and hospitality. High rents are also pushing one in three city workers to consider changing jobs.
Companies in Germany offer housing to attract workers
To tackle the housing shortage, Stadtwerke München has built or acquired 1,500 apartments, aiming for 3,000 by 2030. Rent is income-based, with IT employees paying more than technical workers. The average rent is €12 per square meter—far below Munich’s market rate of €25. This strategy dates back to the 19th century when companies like Krupp provided worker housing, a model now seeing a resurgence, reports Deutsche Welle.
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State support for housing falls short of demand
The German government aims to build 400,000 new homes annually, but rising material costs and inflation have slowed progress. In 2023, only 294,400 homes were completed—800 fewer than in 2022—leaving a shortfall of 800,000 units. To boost construction, the state provides tax breaks and soft loans through KfW Bank. However, only 5% of companies offer employee housing, while 11% provide rent subsidies or other support.
Potential downsides of company-provided housing
Experts warn that companies buying existing homes instead of building new ones could worsen the housing crisis. There are also concerns about social tensions, as many of these homes are allocated to foreign specialists. Unions suggest making it mandatory for companies to build employee housing, while businesses argue that the government should take the lead by providing land for development.