Situation on the rental market remains tense

The rental market is getting tighter. In 69 out of 80 cities with more than 100,000 inhabitants, rents have risen within a year - in 10 of the large cities surveyed even more than the current inflation rate. High housing costs and increased energy and food prices are a burden on households. 

The chances of falling rents in the near future are slim. On the contrary: "Record immigration to Germany and the lull in residential construction are putting additional pressure on the already tight rental markets," says Felix Kusch, managing director of the internet portal Immowelt. According to the federal government's intentions, high numbers of new buildings should actually counteract rising rents. But completions are reaching new lows from month to month. Instead of 400,000 new flats per year, less than 200,000 new flats are to be feared in the coming year.

Experts estimate that there is a shortage of around 700,000 flats in Germany. Record immigration - in 2022 alone there were around 1.5 million more people moving in than moving out - is likely to further increase the number of flats needed. 

The situation is particularly precarious for tenants in Munich. The Bavarian capital is traditionally the most expensive place in Germany. In the past twelve months, average asking rents rose by 5.2 per cent. Instead of 16.68 euros, tenants now have to pay 17.55 euros per square metre for new leases. 

In the other metropolises, the price level is significantly lower, but so is the average income. The burden is therefore similarly high and also rising. In Hamburg and Berlin, asking rents have risen by 3.9 per cent each within a year. In the Hanseatic city, asking rents are currently 11.27 euros, in the federal capital 11.74 euros. Stuttgart, Frankfurt and Cologne are even more expensive. 

Due to the high rents in the metropolises, smaller towns with still moderate rent levels are increasingly coming into focus. In many places, it is worth comparing whether buying a home is more attractive than renting. 

(Photo: © Karlheinz Pape, Pixabay)