Majority of Private Landlords in Germany Are Not Planning Energy Renovations, Survey Finds
Survey finds 59% of private landlords in Germany are not planning energy renovations, citing low urgency, unclear rules and cost barriers – Feb. survey.
Majority of private landlords report no plans for energy renovations
A February survey of roughly 1,000 private landlords shows that 59 percent currently do not intend to carry out energy renovations such as new heating systems or improved insulation. The finding marks a rise from a comparable poll a year earlier, when 48 percent reported no plans for such investments, underscoring a growing slowdown in landlord-driven upgrades.
The survey, compiled by Deutschland.Immobilien AG together with the Institut der deutschen Wirtschaft (IW), found landlords feel increasingly confronted by political and technical demands while lacking clear guidance. IW housing expert Michael Voigtländer warned that without concrete orientation, realistic requirements and workable funding structures the transformation of the building stock will stall.
Survey scope and shifting attitudes among owners
Respondents were predominantly small-scale private landlords who have been active on the rental market for a decade or more, with most owning one or two units. The study notes that more than 60 percent of rental housing is in private hands, placing these owners at the center of any large-scale push to reduce building emissions.
Comparing this year’s results with the previous survey, the number of landlords abstaining from planned measures increased substantially. The change points to growing uncertainty about regulatory direction as well as skepticism about the business case for investments in older housing stock.
Where landlords have invested: heating, windows and insulation
When private landlords did pursue upgrades in recent years, most action focused on heating systems, where 34 percent reported interventions. Window replacements followed at 25 percent and various forms of insulation at 18 percent, indicating selective rather than comprehensive retrofit strategies.
Motivations for those investments were largely economic and tenant-oriented: 53 percent cited long-term energy savings, 41 percent aimed to increase tenant satisfaction and 38 percent expected a rise in property value. Purely ecological motives were less frequently named, at about 31 percent, highlighting that environmental considerations are often secondary to financial drivers.
Barriers cited: urgency, tenant demand and costs
Among landlords who have not undertaken energy renovations, 64 percent said they do not see the measures as urgent. A further 21 percent pointed to weak tenant demand as a disincentive, and 17 percent identified upfront costs as a primary obstacle to action.
The survey also highlights a structural challenge: a large share of the private housing stock dates from the postwar period through the early 1990s—specifically the 1949–1978 and 1979–1994 construction cohorts—periods in which buildings commonly require substantial energy-related upgrades. For many owners, the scale and cost of retrofitting older fabric complicate decisions about when and how to proceed.
Implications for Germany’s climate target and emissions profile
The building sector accounts for roughly one-third of Germany’s CO2 emissions, making residential renovations a key lever for reaching climate neutrality by 2045. Approximately 44 million homes in the country are predominantly heated with oil and gas, and private landlords control a major share of those units, underscoring the sectoral importance of owner decisions.
Analysts say the current reluctance among landlords could slow progress on emissions reductions unless policy measures and financing are better aligned with owner incentives. Given the age profile of much of the rental stock, delay in large-scale investments risks locking in higher emissions for years to come.
Policy shifts rekindle political debate over heating regulation
Political changes have altered the regulatory landscape for heating systems. A previous government plan had envisaged that new heating installations would generally need to deliver at least 65 percent renewable energy, a threshold that has since been removed in reformed legislation. The current approach allows installation of new gas boilers under transition rules, provided an increasing share of CO2-neutral fuels is used from 2029 onwards.
The revision has prompted criticism from environmental groups and Greens politicians, who argue the change undermines efforts to phase out fossil fuels in buildings. Supporters of the reform counter that a more gradual transition and flexibility are needed to prevent immediate cost shocks for landlords and tenants.
Private landlords in the survey signaled that any successful acceleration of energy renovations will require clearer regulatory signals, realistic timelines and targeted, practical subsidies to bridge upfront costs. Without those elements, experts warn, the pace of building decarbonization is likely to remain insufficient to meet national targets.
The findings suggest policymakers face a narrow window to design measures that align landlord incentives with climate goals while addressing concerns about cost, tenant demand and regulatory clarity.
