The prices on the housing market are currently causing difficulties – also in recruiting, because moving for the job is becoming a challenge. Young people such as trainees in particular could possibly reject the job offer because they cannot afford a room or an apartment at the place of work. A current study by the German Economic Institute (IW) shows that employee housing can help here. The support offers from employers have doubled since 2023. Nevertheless, it is only almost one in ten companies. Most help indirectly, for example when looking for an apartment. One in five companies operates in this way.
For the study, HR managers from a total of 826 companies were surveyed from mid-July to the end of August 2025. The companies were randomly selected from all sectors – excluding the public sector.
Employees’ search for housing: increasing support
The IW researchers see employee apartments as a profitable solution for companies and their recruiting strategies. The increasing housing shortage and rising rent prices are not only a deterrent for foreign skilled workers when it comes to immigrating, but also for young professionals.
The importance of such offers is reflected in the numbers: Since 2023, the proportion of companies that directly support employees with housing has increased from a good five to around ten percent. Such direct measures include the rental of company-owned assets, but also through partners, such as apartments or dormitories. Indirect measures to support employees include, for example, internal housing exchanges, financial support or hiring brokers. Here the number rose from almost 12 to 21 percent.
German tradition: the factory apartment
Classic factory housing has a long tradition in Germany. As early as the 19th and early 20th centuries, industrial groups in Germany built entire settlements for their employees. As early as 1900 there were around 143,000 company apartments in the German Empire. By 1914 there were twice as many. Some are still preserved today. This also applies to the apartments in the listed complex of the railway settlement association in Frankfurt-Nied, as the FAZ reported. A better known one might be Siemensstadt in Berlin.
What options do companies have?
As the IW study also shows, company housing support does not automatically have to mean building your own residential complex. There are other ways too. One option, for example, is to cooperate with municipal housing associations to provide shared apartments or apartments. But private landlords can also work with companies and reserve quotas for them.
However, you don’t always have to provide living space yourself. Further financial support such as flat-rate moving costs or temporary rent subsidies can already help employees. Many companies offer their employees discounts through corporate benefits platforms. Discounts on furniture and furnishings or more favorable conditions from moving companies can also be offered there.
Recruiting: Not every target group is convinced
Interestingly, the numbers show that the different target groups in recruiting do not react equally to such offers. The researchers focused on dual students, trainees and skilled workers. It would be expected that target groups with lower incomes in particular would be convinced by such offers. However, the results here paint a different picture. In the survey, only 30 percent of companies stated that recruiting dual students would be easier through such offers. For trainees it was 43 percent. When it comes to retaining employee groups, the dual students perform better, as almost every second company confirms that this is made easier by the company’s commitment to housing.
Skilled workers, on the other hand, seem to respond better to such employee offers. Here, 58 percent of companies stated that recruiting would be made easier through corporate housing commitments. The reason for this is not explained in the study.
Bureaucratic hurdles remain large: only 4 percent are planning new offers
Although IW researchers have been reporting for several years in a row that employee accommodation options are becoming increasingly important, German companies continue to act cautiously. The reasons for this are diverse. Many companies already have the necessary land to build employee apartments. The problem: Residential construction is not permitted in purely commercial areas. There are also difficulties in finding cooperation partners. But the high financial and organizational effort also represents an obstacle.
However, the main problem is the legal classification. This creates unfavorable conditions when renting properties, as aspects such as classic residential rentals, subletting and company social benefits must be taken into account. This is likely to involve high human and financial costs. “Contract design, terms, additional cost regulations or re-letting issues usually require individual solutions and cause administrative effort,” write the authors of the study.
Tonia Schöler is a volunteer at Human Resources.
