Artists in Berlin are suffering from the housing crisis – could micro-apartments be a solution?

Micro-apartments are becoming increasingly important in major German cities. In Berlin, such a small apartment costs an average of €450 per month, including all utilities, while some properties, like the "Campus Viva Berlin II," with apartments ranging from 19 to 56 square meters, charge base rents starting at €495. Given the tight housing market, the question arises whether these compact living solutions could also represent an affordable alternative for the many artists and art students in our capital.

cultural center was sold in 2016, it housed 40 residents, including artists and business owners. Today, many of these displaced creatives are searching for affordable alternatives. At the same time, the demand for small apartments in major cities is steadily increasing.

This is exacerbated by general population growth in urban centers, gentrification, and the influx of refugees in recent years. A comparable example is Frankfurt, where the population increased by 100,000 to 746,000 in fourteen years.

Could micro-apartments in Berlin be a solution for artists? Or will they lead to further displacement of the creative scene? Through an editorial analysis and nuanced examination, we aim to shed light on the opportunities and risks of this housing model for Berlin's artists in 2025.

Artists in the housing crisis: What will be different in Berlin in 2025

Berlin's art scene faces a severe existential crisis in 2025. The Senate's cuts in the cultural sector are hitting subsidized studios particularly hard. While previously €45 million annually was available for workspaces, this figure has now dropped to just €22 million. As a result, approximately 30% of subsidized spaces are at risk, according to a report by rbbKultur * .

Currently, over a thousand subsidized workspaces allocated to the city's approximately 15,000 visual artists, reports Vera Drude in the rbb article. These artists, with an annual income below €35,000, pay only four to seven euros per square meter. On the open market, however, commercial rents for studios average €25 per square meter – unaffordable for most.

The consequences are already being felt: Many artists are moving to Hamburg, Leipzig, or the surrounding areas of Brandenburg. According to a survey conducted by the BBK-Kulturwerk * , half of Berlin's artists stated that they would have to give up their profession without an affordable studio.

"Kolonie 10" in Berlin-Gesundbrunnen is a particularly symbolic example of this development * . The owner wants to build profitable micro-apartments instead, which, at €800 for 19 square meters, would generate significantly more income than the existing cultural spaces * .

Experts compare the situation to New York in the 1990s, when funding programs were cut and artists left. What is lost takes decades to recover.

The rise of micro-apartments in Berlin

In recent years, the cityscape of Berlin has changed noticeably – not only due to large new construction projects, but also due to the increased appearance of so-called micro-apartments.

These compact apartments, usually with less than 30 square meters of living space, are becoming increasingly common in many districts. Especially in central locations, more and more of these units are being built, often fully furnished and designed for short-term or flexible rentals.

This trend is fueled by various developments: rising rents, a tight housing market, increasing mobility, and changing housing needs. At the same time, there is also debate about whether micro-apartments will truly contribute to solving the housing crisis – or whether they will exacerbate it.

You can find an overview of available apartments in Berlin here .

Why micro-apartments are booming in Berlin

Micro-apartments appeal primarily to people who want short-term, centrally located, and uncomplicated accommodation – without long-term leases or significant furnishing costs. Most of these apartments are furnished, efficiently laid out, and often ready for immediate occupancy.

Another reason for their popularity lies in their lower entry price: For many renters, more spacious apartments in prime locations are now hardly affordable. Micro-apartments offer an accessible alternative – especially for singles, young professionals, or temporary city dwellers.

These housing formats are also attractive from the perspective of investors and project developers. High space efficiency, the potential for higher rents per square meter, and rapid re-letting ensure stable returns.

Demand is also supported by societal changes: remote work, international mobility and a growing need for temporary living space are fundamentally changing the understanding of housing.

Learn more about urban change and current housing trends at QUIN Investment .

Who lives in micro-apartments – and why?

The target group for micro-apartments is diverse but clearly defined. Students, expats, young professionals, digital nomads , and remote workers . These groups appreciate the central location, furnished apartments, and flexible rental periods – factors that allow for moving in without significant organizational effort.

International professionals and commuters also use micro-apartments as a practical interim solution. For them, functionality is paramount: a self-contained living space with its own kitchen and bathroom that can be occupied at short notice – without having to worry about furniture, contracts, or infrastructure.

Demand is further fueled by societal trends. Many young adults today live alone for longer, change their place of residence more frequently, or work on a project basis at different locations. In such phases of life, the desire for flexibility is often greater than the desire for permanent ownership or long-term commitment.

At the same time, expectations differ significantly between short-term tenants and people who live (or have to live) permanently in micro-apartments. While the former consciously choose a minimalist living style, the latter often perceive the small space and limited design options as a constraint – especially when there is a lack of social interaction or quality of life in everyday situations.

These differences are playing an increasingly fundamental role in the discussion about the social acceptance and urban integration of this form of housing.

Do micro-apartments also represent a new opportunity for creative minds?

For creative minds, micro-apartments in Berlin offer an interesting prospect. Many of these compact living units, ranging from 14 to 35 square meters, are centrally located and well-connected to public transportation. These factors, in particular, make them attractive to artists who benefit from urban sources of inspiration.

The co-living concept, , could be enriching for the creative scene. Communal areas such as lounges, libraries, or even cinemas in such building complexes promote artistic exchange and networking – an essential aspect for creative work.

The clever use of space in this type of living space is also remarkable. Multifunctional furniture such as fold-down desks or beds with integrated storage maximizes the available space. Optical illusions like mirrors, strategic lighting, and utilizing the full ceiling height make even small rooms appear more spacious.

Berlin, with its 41% single-person households and a projected population increase of 7.5% by 2030 (source: Selbststaendigkeit.de * ) , is a hub for micro-apartment development. This type of housing also boasts impressive energy efficiency – smaller apartments require less heating energy and have a smaller ecological footprint (source: Immobilien.com * ).

However, the question arises: Is the limited space sufficient for artistic work, or will micro-apartments remain merely a housing solution without room for creativity?

Criticisms and controversies: Between solution and repression

Despite their potential, micro-apartments are subject to criticism. "We have a massive problem with micro-apartments," Jochen Biedermann, the district's head of construction in Neukölln, told the taz newspaper The district has since established new guidelines against this type of housing.

The economic aspects are particularly controversial. Since the apartments are furnished and the leases are temporary, they are not subject to rent control – a clear advantage for investors. Prices per square meter are also sometimes considerable at the higher end: In Hamburg, micro-apartments were offered for up to 45 euros per square meter, meaning a 19-square-meter room could cost 790 euros (source: Focus Online * ) .

At the same time, these developments contribute to displacement. The smaller apartments "generally lead to a change in the composition of the residential population," as stated in the Neukölln guidelines. Urban planners also warn that students and commuters are less interested in building strong ties within their neighborhoods, which could promote the development of "dormitory towns.".

Keywords like gentrification, densification, and lack of social mix regularly appear in public debate. Critics warn that micro-apartments do not solve the fundamental problem, but rather fuel short-term profit models – without any long-term benefit for the city's housing situation.

"Colony 10" is particularly symbolic . This historic cultural center, once a meeting place for neighborhood festivals and a home for artists, has been threatened since 2016 by plans of an investor who wants to build 120 micro-apartments there.

The anti-demolition alliance, a coalition of more than 70 actors from various sectors, is now fighting against the "supposedly unavoidable cycle of demolition and new construction".

Furthermore, the limited space is seen as problematic – especially with long-term use. A lack of storage space, few opportunities for retreat, and a lack of privacy can negatively impact well-being and mental health. This is particularly evident for people who work from home, have a home studio , and have to combine living and working in a very confined space.

A more detailed analysis of the situation can be found in the overview of the current real estate market in Berlin .

Micro-apartments: Temporary trend or long-term solution?

Whether micro-apartments remain just a fad or a permanent fixture of Berlin's housing market depends on several factors.

It is clear that this compact form of housing meets certain societal needs very precisely – especially in cases of short-term housing requirements, high mobility and urban lifestyles.”

In that respect, they currently fulfill a function for which the traditional housing market often does not offer a suitable answer.

In the long term, however, the question arises whether this form of housing will continue to be socially and politically desirable. Voices from urban planning and politics warn that micro-apartments must not lead to the displacement of affordable, long-term usable housing. It is conceivable that future regulations will more strictly define minimum sizes or permitted uses – particularly in areas with tight housing markets.

Economic conditions could also influence this development. Rising construction costs, changing demand due to working from home, or declining immigration could mean that micro-apartment projects are no longer always profitable. On the other hand, mobility, urbanization, and the ongoing housing shortage suggest that compact housing concepts will generally remain relevant.

Therefore, an adaptation of the format is likely – for example, through more communal areas, smarter floor plans, or more flexible usage concepts. Micro-apartments will continue to evolve, but as a housing form in a dynamic city like Berlin, they are unlikely to disappear.

Let's remember..

Micro-apartments can be part of the solution. The micro-apartment debate reflects the complex challenges of the Berlin housing market.

On the one hand, these compact living solutions offer definite advantages for artists: central location, communal spaces for creative exchange and efficient use of space.

On the other hand, the high price per square meter and the circumvention of rent control give rise to legitimate concerns. However, the fate of cultural venues like "Kolonie 10" demonstrates that economic interests are often prioritized over cultural value. Berlin's art scene is therefore at a critical juncture. Without targeted support, Berlin risks suffering the same fate as New York in the 1990s – a gradual erosion of the creative substance that distinguishes the city internationally.

Micro-apartments can therefore, at best, represent a partial solution. Government funding programs for affordable studio spaces remain essential , while alternative housing concepts must be developed simultaneously. For example, micro-apartments specifically designed for artists with integrated workspaces or shared studios would be conceivable.

Berlin thus faces the challenge of balancing economic viability with its cultural identity. The city must decide whether it wants to remain true to its historical role as a creative center or succumb to the pressure of profit. The coming years will show whether Berlin can find its own way to create housing for all without losing its artistic soul.