German cities are grappling with a housing affordability crisis as rent prices have surged by nearly 50% since 2015, despite government-imposed rent caps. The situation has worsened as housing shortages persist, with demand outstripping supply in major metropolitan areas. The government’s rent control measures have failed to keep pace with rising costs, leaving many residents struggling to afford housing.
Meanwhile, Chinese competition is placing increasing pressure on German industrial sectors. Recent data indicates that Chinese manufacturers are gaining ground in key markets, threatening to erode Germany’s competitive edge. This dual challenge has led to calls for urgent action to address both housing affordability and industrial competitiveness, as the government faces mounting pressure to find solutions for these pressing issues.