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

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

The housing crisis is hitting creative minds in Berlin particularly hard. Before the sale of a cultural center in 2016, 40 residents, artists, and businesspeople, lived there together. Today, many of these displaced creatives are looking for affordable alternatives. At the same time, the demand for small apartments in big cities is steadily growing.

This is exacerbated by the 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.

Can micro-apartments in Berlin be a solution for artists? Or will they lead to further displacement of the creative scene? With a nuanced editorial analysis, we aim to shed light on the opportunities and risks this housing option presents 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 45 million euros were previously available annually for workspace, this figure is now down to just 22 million. This puts approximately 30% of subsidized spaces at risk, according to a report by rbbKultur * .

Currently, over a thousand subsidized work spaces allocated to the city's approximately 15,000 visual artists, according to Vera Drude in an rbb article. With an annual income of less than €35,000, these artists 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 noticeable: Many artists are moving to Hamburg, Leipzig, or the surrounding Brandenburg region. According to a survey conducted by the BBK-Kulturwerk *, half of Berlin artists stated that they would have to give up their profession without an affordable studio.

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

Experts compare the situation to New York in the 1990s, when funding programs were cut and artists left. Once lost, it takes decades to return.

The rise of micro-apartments in Berlin

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

These compact residential units, usually less than 30 square meters of living space, are on the rise in many districts. Especially in central locations, these units are increasingly being built, often fully furnished and designed for short-term or flexible tenancies.

The trend is fueled by various developments: rising rents, a tight housing market, growing mobility, and changing housing needs. At the same time, there is also debate about whether micro-apartments really contribute to solving the housing crisis—or rather exacerbate it.

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

Why micro-apartments are booming in Berlin

Micro-apartments primarily appeal to people who want short-term, central, and as uncomplicated a place to live as possible—without long-term leases or significant furnishing costs. Most of these apartments are furnished, efficiently designed, and often ready to move into immediately.

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

These residential 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 being driven by societal changes: remote work, international mobility, and a growing need for temporary housing 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 audience for micro-apartments is diverse but clearly defined. Students, expats, young professionals, digital nomads , and remote workers . These groups value the central location, furnished interiors, and flexible rental periods—factors that make moving in easy and straightforward.

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

Demand is further fueled by social trends. Many young adults today live alone for longer periods, change residence more frequently, or work on projects at different locations. During such phases of life, the desire for flexibility often exceeds the desire for permanent ownership or long-term commitment.

At the same time, expectations differ significantly between short-term tenants and those who (have to) live permanently in micro-apartments. While the former consciously choose the 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 life.

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

Are micro-apartments also a new opportunity for creative minds?

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

The co-living concept, , could be enriching for the creative scene. Communal spaces such as lounges, libraries, or even cinemas in such building complexes promote artistic exchange and networking—an essential aspect of 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 projected population growth of 7.5% by 2030 (source: Selbststaendigkeit.de * ) , is a center for micro-apartment development. This housing option also boasts 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 do micro-apartments remain merely a living solution without room for creativity?

Criticisms and controversies: Between solution and repression

Despite their potential, micro-apartments are under fire. "We have a massive problem with micro-apartments," Jochen Biedermann, Neukölln's City Councilor for Construction, explained to the taz The district has since established new guidelines against this form of housing.

The economic aspects are particularly controversial. Because the apartments are furnished and the leases are fixed-term, they are not subject to rent controls—a clear advantage for investors. Prices per square meter are also sometimes considerable at the upper end: In Hamburg, micro-apartments have been offered for up to €45 per square meter, meaning a 19-square-meter room can cost €790 (source: Focus Online * ) .

At the same time, these developments contribute to displacement. The small apartments "generally lead to a change in the composition of the residential population," as the Neukölln guidelines state. City planners also warn that students and commuters are less interested in forming bonds within their neighborhoods, which could encourage the development of "dormitory communities."

Keywords like gentrification, densification, and a lack of diversity regularly appear in the public debate. Critics warn that micro-apartments don't solve the underlying problem, but rather fuel short-term profit models – without providing long-term added value for the city's housing situation.

"Kolonie 10" in Gesundbrunnen is particularly symbolic

The Anti-Demolition Alliance, an alliance of more than 70 actors from various sectors, is now fighting against the “supposedly inevitable cycle of demolition and new construction.”

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

You can find a detailed overview of the situation 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 an integral part of the Berlin housing market depends on several factors.

One thing is clear: this compact form of housing serves certain social needs very precisely – especially in terms of short-term housing needs, high mobility, and an urban lifestyle."

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

Economic conditions could also influence developments. Rising construction costs, changing demand due to home office work, or a decline in immigration could mean that micro-apartment projects are no longer viable in every case. On the other hand, mobility, urbanization, and the ongoing housing shortage suggest that compact living concepts will generally persist.

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

Let's hold on ...

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 certainly offer advantages for artists: central location, shared spaces for creative exchange, and efficient use of space.

On the other hand, the high prices per square meter and the circumvention of rent control raise legitimate concerns. However, the fate of cultural venues like "Kolonie 10" demonstrates that economic interests are often placed above cultural value. Berlin's art scene is therefore at a critical juncture. Without targeted support, Berlin is in fact threatened with the fate of New York in the 1990s—a gradual loss of the creative substance that distinguishes the city internationally.

Micro-apartments can therefore only represent a partial solution at best. Government subsidies for affordable studio space remain essential , while alternative housing concepts must be developed at the same time. Examples include micro-apartments specifically designed for artists with integrated workspaces or shared studios.

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