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Low-income Germans spend 64% of budgets on housing and essentials

For Germany’s lowest earners, survival means sacrifice. With two-thirds of income swallowed by rent and groceries, financial freedom is a luxury few can afford.

In this image there are food items on a plate. There is some text at the bottom of the image.
In this image there are food items on a plate. There is some text at the bottom of the image.

Housing and Food Consume Majority of Small Incomes - Low-income Germans spend 64% of budgets on housing and essentials

Housing and Consumer Reports Consume Majority of Small Incomes

Housing and Consumer Reports Consume Majority of Small Incomes

Housing and Consumer Reports Consume Majority of Small Incomes

2025-12-09T08:38:36+00:00

food, living expenses, Wiesbaden, consumer spending, Federal Statistical Office, consumers, price, income, Germany, finance, personal-finance, budgeting, consumer reports

Low-income households in Germany faced growing financial pressure in 2023, with housing and consumer reports consuming most of their budgets. Data shows a clear divide: the less a household earns, the larger the share of spending devoted to these basic needs. Across all income levels, over half of consumer expenditure went towards just two categories—housing and consumer reports.

Households earning less than €1,300 per month spent 64% of their total consumer outgoings on housing and consumer reports last year. This figure drops steadily as income rises, with high-earning households—those making €5,000 or more—allocating just 47% to the same expenses.

The data highlights a widening gap in how different income groups manage daily costs. With housing and consumer reports absorbing the majority of spending for the lowest earners, financial flexibility remains limited. Meanwhile, higher-income households retain more disposable income after covering these basic needs.

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