Berlin’s Housing Crisis: Migrants Housed, Locals Wait

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Jun 27, 2025

Berlin's new asylum complex for 1,000+ migrants sparks debate as locals struggle with housing. What's prioritized in the city's budget? Read on to find out...

Financial market analysis from 27/06/2025. Market conditions may have changed since publication.

Have you ever walked through a city and felt the weight of its contradictions? In Berlin, a city pulsing with history and ambition, the latest decision to build a massive asylum complex on Tempelhofer Feld has stirred up more than just dust. While the city scrambles to house over 1,000 migrants, locals are left grappling with a housing crisis that feels like an endless waiting game. It’s a story of competing priorities, tough choices, and a city stretched thin. Let’s dive into what’s happening and why it matters.

A City Divided: Housing for Migrants vs. Locals

Berlin’s housing market is a pressure cooker. With an estimated shortage of 800,000 apartments across Germany’s major cities, the struggle for affordable homes is real. Yet, the state government has greenlit a plan to construct a sprawling container village on Tempelhofer Feld, a historic site, to accommodate over 1,000 asylum seekers by 2028. This move, while addressing an urgent need, has sparked heated debate. Why? Because locals, many of whom have been on housing waitlists for years, feel sidelined.

The housing crisis isn’t just about numbers—it’s about who gets priority and why.

– Urban policy analyst

The decision to override a 2014 law protecting Tempelhofer Feld from development adds fuel to the fire. This former airport, once a Nazi labor camp, is a symbol of Berlin’s complex past. Now, it’s set to become a temporary home for migrants, while proposals to build homes for Berliners on the same site remain stuck in bureaucratic limbo. It’s the kind of paradox that makes you wonder: how does a city balance compassion with fairness?


The Asylum Complex: A Closer Look

The new facility, slated to open in the second half of 2028, will provide between 1,000 and 1,100 beds for asylum seekers. According to officials, the goal is to ease the strain on Berlin’s overflowing shelters. The project will repurpose part of Tempelhofer Feld, though authorities promise to preserve its sports and leisure areas. A mini-golf course and barbecue lawn will be relocated, and historically sensitive areas will remain untouched. Sounds reasonable, right? But here’s the catch: the same urgency isn’t being applied to housing solutions for locals.

I’ve always thought cities reflect their priorities in the spaces they create. Berlin’s choice to fast-track migrant housing while leaving local housing plans on hold feels like a statement. It’s not just about bricks and mortar—it’s about who gets to call a place home and when. The contrast is stark, and it’s no surprise that tensions are rising.

The Local Housing Struggle: A Growing Frustration

Berliners are no strangers to housing woes. The city’s population has swelled, and affordable apartments are as rare as a sunny day in February. Families, young professionals, and retirees alike are stuck in a cycle of rising rents and long waitlists for social housing. In 2023, a new complex in Spandau with 128 apartments was reserved exclusively for refugees, housing 570 people indefinitely. Meanwhile, locals on waitlists were told to keep waiting.

  • 800,000: Estimated apartment shortage across Germany’s major cities.
  • 152,000: Potential homes that could be created from vacant office spaces nationwide.
  • €2.1 billion: Berlin’s 2023 spending on asylum-related costs, 5% of its budget.

These numbers paint a grim picture. While empty office buildings could theoretically be converted into homes, strict regulations—over 20,000 building codes—along with high interest rates and construction costs make it a pipe dream for now. Perhaps the most frustrating part? The city is renting office space for migrant housing at inflated rates, sometimes paying €40 per square meter when the market rate is closer to €25.80.

It’s not about denying anyone a home—it’s about why some needs are met faster than others.

– Berlin resident

The Financial Strain: Borrowing to Bridge the Gap

Berlin’s budget is feeling the pinch. In 2023, the city shelled out at least €2.1 billion on asylum-related expenses, a figure that’s hard to ignore when you consider it’s 5% of the entire budget. To keep up, the state government is turning to emergency borrowing, taking advantage of relaxed rules under the new federal debt brake policy. This means €670 million annually for 2026 and 2027, totaling €1.3 billion in new debt.

Now, I’m no economist, but borrowing to cover ongoing costs feels like putting a Band-Aid on a broken leg. It might help in the short term, but what happens when the bills keep piling up? The city’s commitment to migrant housing is clear, but the lack of similar urgency for local housing solutions leaves many scratching their heads.

Expense CategoryAmount (2023)Impact
Asylum-Related Costs€2.1 billion5% of Berlin’s budget
Emergency Borrowing€1.3 billion (2026-2027)Increased debt burden
Office Space Rental€40/sq meterAbove market rates

Tempelhofer Feld: A Symbol of Division

Tempelhofer Feld isn’t just a plot of land—it’s a piece of Berlin’s soul. Once a Nazi labor camp, then an airport that played a starring role in the Berlin Airlift, it’s now a beloved public space for sports, picnics, and community events. The decision to build on it, even partially, feels like a betrayal to some Berliners. Six proposals for the site’s future are under review, but no decisions will be made until at least September, and a public referendum might be needed. Yet, the asylum complex is moving forward regardless.

It’s hard not to see this as a metaphor for broader tensions. On one hand, Berlin’s commitment to welcoming migrants is a point of pride for many. On the other, the housing crisis is squeezing locals out of their own city. The question isn’t whether both groups deserve homes—it’s whether the city can find a way to balance these needs without leaving anyone behind.

The Bigger Picture: A City at a Crossroads

Berlin’s housing crisis isn’t just about numbers or budgets—it’s about people. Families waiting for apartments, young professionals priced out of the market, and asylum seekers needing a safe place to start over. The city’s choices reflect a deeper struggle: how to uphold humanitarian values while addressing local needs. It’s a tightrope walk, and Berlin isn’t the only city grappling with it.

In my experience, cities thrive when they listen to all their residents. Berlin’s decision to prioritize migrant housing is understandable, but ignoring the local housing shortage risks alienating the very people who keep the city running. Could there be a middle ground? Perhaps converting vacant offices into homes or streamlining regulations could ease the pressure. But for now, the divide grows.

A city that can’t house its people risks losing its heart.

– Urban planner

What’s Next for Berlin?

As Berlin moves forward with the Tempelhofer Feld project, the debate is far from over. Will locals push back through a referendum? Can the city find a way to address the housing shortage without breaking the bank? And most importantly, how will Berlin balance its global responsibilities with the needs of its own residents?

These questions linger like the morning fog over the Spree. For now, the container village is set to rise, while Berliners wait for their turn. It’s a story that’s as old as cities themselves: growth, change, and the constant struggle to define what home means. Maybe the real challenge is finding a way to make room for everyone.


Berlin’s housing crisis is a mirror reflecting the city’s values, its challenges, and its future. As the city navigates this delicate balance, one thing is clear: the choices made today will shape Berlin for years to come. What do you think—can Berlin find a way to house both its newest arrivals and its long-time residents? The answer might just define the city’s soul.

If you really look closely, most overnight successes took a long time.
— Steve Jobs
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