Investment costs: the part of the bill that pays for the building
Residents help pay for building, furnishing and maintaining a care home unless the state funds it. Why the item varies so much and never gets smaller.
Checked by Radif Partners · Editorial policy · How we calculate
Investment costs in your state
Investment costs per month
€654
| per year | €7,848 |
| Share of co-payment (year 1) | 17.8 % |
| National average | €521 |
Investment costs (Investitionskosten) are the part of German care home fees that pays for the building: construction, modernisation, furnishings, rent or lease. Where public funding from the federal state does not cover them, the home may bill residents separately (section 82(3) of Book XI of the Social Code); funded homes need the state authority’s approval to do so. The states are responsible for care infrastructure (section 9) but fund it very differently, and the figures show it: on 1 July 2026 the national average was €521 a month (vdek), ranging from €332 in Brandenburg to €654 in North Rhine-Westphalia. The long-term care fund never subsidises investment costs, not even through the supplement. Their share of the co-payment therefore grows over time, from 15 % in year one to 25 % from year four. Some states help residents in need, for example North Rhine-Westphalia with its Pflegewohngeld.
Investment costs by state
| State | July 2026 | January 2026 | Share of co-payment, year 1 | Share from year 4 |
|---|---|---|---|---|
| North Rhine-Westphalia | €654 | €646 | 18 % | 26 % |
| Bremen | €630 | €607 | 17 % | 26 % |
| Saarland | €574 | €533 | 16 % | 24 % |
| Schleswig-Holstein | €573 | €559 | 18 % | 28 % |
| Hamburg | €572 | €571 | 16 % | 26 % |
| Lower Saxony | €568 | €559 | 19 % | 30 % |
| Hesse | €528 | €525 | 15 % | 25 % |
| Rhineland-Palatinate | €508 | €506 | 15 % | 23 % |
| Berlin | €469 | €466 | 14 % | 24 % |
| Baden-Württemberg | €463 | €461 | 13 % | 21 % |
| Saxony | €455 | €452 | 14 % | 24 % |
| Thuringia | €454 | €452 | 14 % | 23 % |
| Bavaria | €434 | €433 | 13 % | 22 % |
| Mecklenburg-Western Pomerania | €371 | €368 | 12 % | 21 % |
| Saxony-Anhalt | €345 | €335 | 12 % | 20 % |
| Brandenburg | €332 | €318 | 11 % | 18 % |
The most and least expensive states are €322 a month apart, €15,456 over four years. Unlike the care part, which moved by more than a hundred euros in six months in some states, investment costs are fairly stable; the national average rose by €7 between January and July 2026.
What the law allows
The states are responsible for adequate care infrastructure and set their own funding rules (section 9 SGB XI). Whatever that funding does not cover, the home may bill separately; funded homes need the state authority’s consent, unfunded homes only have to notify it (section 82(3) and (4) SGB XI). The contract shows investment costs as a separate line. Increases follow the rules for fee rises: written reasons, and investments only where necessary and not publicly funded (section 9 WBVG).
How long do savings last in a care home?
Savings last
20 months
| Gap in month 1 | €2,170.55 |
| Protected amount kept | €10,000 |
After that the social welfare office can pay Hilfe zur Pflege.
Why the item weighs more over time
The care fund’s supplement only reduces the care part. In year one investment costs are 15 % of the co-payment at the national average, from year four 25 %. In states with high investment costs such as North Rhine-Westphalia or Bremen this is even more marked. For long stays, compare this item carefully when choosing a home, ideally over the whole expected length of stay.
Two homes in the same city
A worked example shows why this line matters. Two homes charge the same care part and the same board and lodging. The first is an older building with investment costs of €400 a month, the second a new building at €750. In year one the family pays €350 a month more in the new home, and in year four still €350, because the supplement offsets nothing here. Over four years that is €16,800. The figure says very little about the actual quality of care; it mainly reflects the building and how it was financed. A modern single room with its own bathroom may be worth the difference, but it does not have to be.
For a parent who is likely to stay a long time, this is the item with the greatest effect over the years. If you are torn between two homes in a similar location, compare the total over the expected stay rather than the first month’s co-payment. The care home calculator uses the state average; with the home’s own EEE and its bill you can work out the exact figure.
Help for residents with little money
Some states support residents in need with investment costs. In North Rhine-Westphalia the Pflegewohngeld covers this part when income and savings are not enough, from grade 2 in permanent residential care (Consumer Centre NRW). Where no such benefit exists, investment costs are part of what the welfare office covers under social assistance for care once savings are down to €10,000.
Questions to ask when comparing homes
- How much are the monthly investment costs, and since when has that figure applied?
- Is the home state-funded, and are increases announced, for example for renovation?
- Do single and double rooms differ?
- Is state help with investment costs available, and does the home qualify?
- How have investment costs developed over recent years? A short answer from the home shows whether increases are likely soon.