Eastern Germany offers free housing — here's why

The streets of Guben. Photo: Jens Kämeling

Imagine: you are offered to live in a cosy town for free, with all amenities, so that you can experience what it is like to be part of it. In East Germany, some towns have taken this step, offering free accommodation for several weeks. But why? It is not just generosity or a marketing ploy. Behind this initiative lies a serious problem — depopulation, which threatens the existence of entire regions.

More than thirty years have passed since the reunification of Germany, but the gap between the west and east of the country has not yet been bridged — this is particularly evident in demographics. The eastern part, once dominated by the industrial giants of the socialist era, continues to lose population, according to DW

Young people and skilled workers are seeking better prospects in the megacities of the West, leaving behind abandoned houses, empty streets, and declining economic activity.

Eastern cities are becoming deserted: why people are leaving

In Eisenhüttenstadt, the population has fallen from 50,000 in 1990 to around 24,000 today. This is typical of many towns in Eastern Germany.

The consequences of this exodus are palpable: lower tax revenues, closed schools, reduced medical services, and an ageing population. All of this creates a vicious circle that is becoming increasingly difficult to break.

Cities went all in: free accommodation

In response to the prolonged economic downturn, the authorities in several German cities have decided to take an unusual step — offering potential residents free accommodation. The Make Plans Now program, which is already up and running in Eisenhüttenstadt and Guben, offers fully furnished apartments for two weeks at no cost to participants.

The idea is simple: come, live, see, and decide. The authorities organise introductory tours of the city, meetings with entrepreneurs, interviews for job seekers, and other events to immerse participants in the local community. This is no longer just tourism — it is a test drive of life.

"People come here and discover silence, tranquillity, affordable housing, and clean streets. It's a contrast after Berlin," Anika Franze, who once used the program herself and now coordinates it in Guben, explains.

Does this model work? Initial results

Despite initial scepticism, the first results are encouraging. Many people came and stayed. They appreciate the quality of life, low housing costs, a peaceful environment for families, and quick access to nature.

This is important for the local economy. In Eisenhüttenstadt, for example, a modernised steelworks is still in operation, providing jobs for over 2,500 people. But this is not enough to keep the city afloat — a new influx of people is needed.

The free accommodation programme has become a way to draw attention to what these cities have to offer. And often, it is exactly what is lacking in overpopulated megacities.

Not just an apartment: what you need to stay

Experts note that such programs can only work as part of a broader strategy. It is not enough to simply settle people — conditions must be created for them to stay.

"If a city lacks schools, hospitals, transport, and internet, no amount of free housing will save the situation," sociologist Bernd Müller from Potsdam notes.

Therefore, in parallel with initiatives for newcomers, cities are modernising their infrastructure, supporting local businesses, and investing in digital transformation and cultural projects.

The European context: Who else is fighting depopulation?

The demographic crisis is not limited to eastern Germany. In Poland, the Czech Republic, Slovakia, and even Italy, small towns and villages are also suffering from population loss. Some offer cheap houses for €1, others offer tax breaks or grants to start a business.

But it was Germany that first proposed a "trial living trip" as a way to attract people. This approach has already attracted the attention of other countries. If the model shows consistent results, it could be adapted in other regions of Europe, according to experts.

As a reminder, the world's most comfortable city in 2025 was announced.

Earlier, we wrote about the five countries that are the most affordable and where you can buy real estate.