New data released by the German federal government reveals significant rent increases across the nation throughout 2024. Zweibrücken, located in the Palatinate region, recorded the highest surge, experiencing a 15.9% increase in rental costs. Schweinfurt and Pirmasens followed closely with increases of 13.4% each.
The findings, reported by the “Frankfurter Rundschau” based on a parliamentary inquiry initiated by Left Party politician Caren Lay, highlight a widening trend affecting communities beyond major urban centers. Kaiserslautern (12.6%), Rosenheim (12.3%) and Schwabach (11.9%) also registered substantial increases. Rounding out the top ten were Offenbach am Main, Leipzig, Frankfurt am Main and Brandenburg an der Havel, with increases ranging from 11.3% to 10.9%.
The data, compiled from the BBSR Housing Market Observation, IDN ImmoDaten and microm Wohnanlagen, assesses the rental rates of first and subsequent lettings of apartments advertised online.
According to Caren Lay, spokesperson for housing policy for the Left Party in the Bundestag, the escalating rents are impacting rural areas alongside traditional urban centers. She emphasized that prospective renters now face up to a 16% increase compared to the previous year.
Lay expressed concern that wage growth is not keeping pace with these increases, leading to financial strain for low-income tenants and extending into the middle class. She also pointed to the impact on the state, which is encountering escalated costs for housing and citizen’s allowances as it subsidizes rent payments.
In response to the findings, Lay is advocating for a policy shift, specifically calling for a nationwide rent cap with local limits and a ceiling on rent increases during renewed leases.
German rental rates for apartments ranging from 40 to 100 square meters, advertised online, have collectively risen from €10.55 net cold rent per square meter in 2023 to €11.17 per square meter in 2024 – a rise of nearly 6% nationwide.