More renters live in the east of Germany than in the west

In the east of Germany there are comparatively more renters than in the west. However, rental debts only make up a small proportion of the average total debt.

Rent debts are much more widespread among over-indebted people in eastern Germany than in the west.

WITHTwo out of ten over-indebted people who sought help from a debt counseling center in Germany in 2018 had rent debts. These are found much more frequently in eastern Germany in particular. The Federal Statistical Office announced this on Monday based on the results of the 2018 overindebtedness statistics.

While in the new federal states almost one in three (31 percent) sought advice from a debt counseling center on account of rent debts, the proportion in the former federal territory was significantly lower at 18 percent. Only one in five over-indebted people sought advice on rent arrears.

The liabilities to landlords averaged 870 euros. Across Germany, over-indebted people were in arrears with an average of just under 1.8 monthly rents. In relation to the average total debt of 29,008 euros, rental debt only made up 3 percent. In 2018, the average housing costs (rent including ancillary costs) of all advised debtors were 491 euros.

In the new federal states, the rental debts of people advised were an average of 1147 euros, 46 percent higher than in the former federal territory with an average of 786 euros. The outstanding liabilities with landlords corresponded to a good 2.7 monthly rents in the new federal states compared to 1.5 monthly rents in the former federal territory.

The results of the over-indebtedness statistics are based on information from 559 of the total of around 1,450 debt counseling centers in Germany. They provided anonymized data from around 136,000 advised people with their consent. Participation in these statistics is voluntary for both the advice centers and those seeking advice.