Residents Of This Community Spend Only $1 On Rent — Per Year

There is a small catch, though....

Damjan

• Published in Community
• October 28, 2024

Amid the rising costs of modern real estate, the Fuggerei in Augsburg, Germany, is a rare historical relic that bucks the trend.

Established over 500 years ago by the wealthy Jakob Fugger, this small, walled village was designed to provide affordable housing for Augsburg’s less fortunate residents—a mission it has astonishingly upheld for centuries.

Despite its obscurity outside Germany, the Fuggerei captured international interest a few years back when the Wall Street Journal spotlighted it, emphasizing the striking longevity of its purpose-driven design and enduring social role.

The Fuggerei is home to 142 residents who live within its quiet, fortress-like walls, following simple, longstanding community rules.

Life here requires daily prayer, respect for a curfew, and an understanding of the village's historical values. These traditions aren’t relics; they reflect Fugger’s original vision of a close-knit, supportive community.

Remarkably, rent here remains almost unchanged—just one euro annually, along with three daily prayers, a commitment that contrasts sharply with the soaring costs elsewhere. In a world where affordable housing solutions are often fleeting or compromised by market pressures,

Fuggerei’s resilience stands out. It shows that sustainable, compassion-driven projects can survive centuries of change, providing a powerful counterpoint to today’s market-driven housing landscape and an enduring model for socially motivated urban planning.

Fuggerei, established in 1521 by Jakob Fugger the Rich (1459-1525), has provided a home for Augsburg's needy residents for over five centuries and remains continuously inhabited.

Established in 1520 by Jakob Fugger the Rich, a banker of the wealthiest men of his time, the Fuggerei was created as a charitable housing complex for the poor and needy of Augsburg. Fugger’s goal was simple but impactful: he wanted to provide affordable housing for struggling Catholic residents.

His philanthropic vision ensured that residents paid only a token rent, initially set at the cost of one Rhenish guilder per year—equivalent to the current 88 euro cents, or about a dollar. To ensure this charitable housing would be available for generations to come, Fugger set up a trust to fund the Fuggerei.

That trust still exists today, covering the community’s upkeep costs and housing subsidies. However, the trust yields only modest returns of about 0.5% to 2% annually (Wall Street Journal).

These returns and a small admission fee charged to tourists enable Fuggerei to continue operating according to its founder’s original vision. Residents are asked to meet just a few requirements in return for their subsidized rent.

Fuggerei in Bavaria has 67 houses, 142 apartments, and St. Mark's Church.

Residents of the Fuggerei live within a close-knit and unique community bound by rules that have been in place since its founding. Each tenant must pray three times daily—an expression of the village’s deeply rooted Catholic traditions.

The village gates are locked promptly at 10 p.m. each night, ensuring order and safety within the complex. These rules are part of the Fuggerei's unique character, distinguishing it from other affordable housing projects worldwide.

The community includes 67 houses and 147 apartments, and residents live in homes ranging from 50 to 700 square feet. Despite the limitations on space, tenants find solace in the peaceful atmosphere of the village, knowing they are part of a longstanding tradition. To qualify for residency, one must be a Catholic who has lived in Augsburg for at least two years and can demonstrate financial need.

Although residents’ privacy is respected, the Fuggerei welcomes tourists, offering them a glimpse into this historic community for a €4 admission fee. While visitors cannot enter the occupied residences, they can tour a model unit designed to replicate the living conditions within the village.

This helps preserve residents' dignity while offering visitors insight into a nearly 500-year-old tradition. The entrance fee also serves an essential purpose, contributing additional revenue that helps maintain the Fuggerei.

This balance between preserving residents’ privacy and inviting tourism has enabled the community to thrive while drawing curiosity and admiration from visitors who marvel at the combination of simplicity and longevity that defines the Fuggerei.

The Fuggerei as a Living Monument to Charity

The Fuggerei’s dedication to affordable housing is still significant today, especially as housing costs keep rising and become unaffordable for people with lower incomes. This small community has survived for over 500 years, proving that thoughtful charity and good planning can go a long way.

The Fuggerei shows that affordable housing can work without forgetting its primary purpose—to help those in need. While today’s affordable housing projects often face financial challenges, the Fuggerei has kept going by using small returns from its trust and adding funds from tourism.

Although the Fuggerei was started at a different time, its lasting success highlights the value of community-centered charity.

Damjan