Germany's basic security reforms expose housing discrimination and new benefit coverage

In Erfurt, a severe shortage of about 3,000 apartments reflects a nationwide deficit of roughly 1.4 million homes, prompting landlords to favor tenants with higher incomes. Applicants receiving state benefits are often excluded from rental opportunities, despite anti‑discrimination laws, and some landlords even demand additional security from benefit recipients.

The recent reform of Germany's Grundsicherung (basic security) expands the range of costs the Jobcenter can cover. Beyond rent, heating and utilities, the Jobcenter may now pay for parking spaces, garages or underground stalls, even for recipients who do not own a car. Court decisions – the Bundessozialgericht ruling of May 2021 and the Landessozialgericht Baden‑Württemberg decision of May 2025 – have affirmed that such expenses qualify as part of accommodation costs when they are included in a unified rental contract.