Germany is a special case in terms of housing in Europe. Its housing system features a large share of renters and a distinct housing stock due to the Second World War. The development of housing costs is a dominant topic in the public debate as well as rising energy costs are also being intensively discussed, particularly with regard to their impact on low-income households. The chapter describes current cost development in housing both for people buying and renting and takes a look at different developments regarding settlement structures. It also addresses analyses of the causes of cost development, which are manifold (demographic developments, population growth, financing structures, land prices, construction costs, and heating costs). It further sketches the housing policy instruments used in Germany and how they have been reformed in recent years in order to counter the rising cost of housing and energy prices. The chapter concludes that a large portion of government activity is related to the renting tenures, but that also owner-occupants are affected by the crisis.