Rents are exploding: regions with the strongest increase

Rents are exploding: regions with the strongest increase

The German housing market is facing serious challenges as the construction of new apartments is declining and there is already a deficit of around 600,000 to 700,000 residential units, with a rising trend. Exclusive data from IPENN.MEDIA, based on the empirica research institute, shows that rents are rising sharply in some German regions.

Analyzes show that rents have increased in every district in Germany over the last ten years. What is striking is the clear difference in rental price developments between the old and new federal states. Brandenburg in particular stands out, as the average rent in the Dahme-Spreewald district has more than doubled in a decade.

In Munich, the price per square meter is approaching the 20 euro mark, while the Erzgebirgskreis in Saxony, for example, only charges around 5.50 euros per square meter. The steepest price increases were recorded in Munich, where the rent per square meter rose by a remarkable 6.50 euros. The price development in Cologne and Stuttgart has overtaken Hamburg.

Housing construction in Germany is stagnating, which is leading to continued pressure on the rental market. Residential real estate expert Roman Heidrich from JLL predicts that the situation will not ease due to the lack of new construction. Both structurally weak regions and urban areas with rising vacancies are affected by rent increases that are driven by inflation, rising wage costs and modernization.

To mitigate the exorbitant rental prices, Heidrich suggests that both the private sector and the federal government must take measures to make housing more attractive. One option is to reduce VAT on new rental residential buildings to make construction more cost-effective. Despite potential solutions, the future of the housing market remains a challenging matter.