Fig. 1 — The focus of housing policy has shifted from brick and mortar subsidies to personal subsidies
Source: Schulte et al. (2026). Values in € billion (real, base year 2025). Federal & state (Länder) expenditure on housing policy.
In 2005, Germany's Hartz welfare reforms introduced a housing allowance for long-term unemployed households (Kosten der Unterkunft — KdU). This caused a level shift in public expenditures on personal subsidies.