A widening gulf is emerging between established rental rates and the soaring costs of securing new housing in Germany, creating a “lock-in effect” that traps families and individuals in unsuitable living situations, according to a recent study by the property owners’ association Haus & Grund. The study, reported by Handelsblatt, reveals that a significant portion of the population is exceeding the widely accepted affordability threshold of 30 percent of household income dedicated to rent following a relocation.
Berlin has emerged as the most expensive city for those undertaking a move, with families now facing net cold rent costs exceeding 32 percent of their income. Single individuals in the capital are even more drastically impacted, dedicating nearly 42 percent of their income solely to rent. This trend extends beyond Berlin, with Munich (41.2%), Offenbach am Main (40.2%), Frankfurt am Main (38.2%) and Freiburg im Breisgau (36.3%) also exhibiting alarmingly high rental burdens for single occupants.
While families with children experience an average post-move rental burden of 19.4 percent of income, single individuals face a substantial 26.3 percent average. This disparity highlights a growing disconnect between the prices advertised for new rental properties on online platforms and the considerably lower rates enjoyed by those already secured in existing leases.
Haus & Grund attributes this situation to a “lock-in effect” arguing that the increasingly prohibitive cost of relocation creates a powerful economic incentive for individuals and families to remain in their current residences, even when a move would be desirable for professional, familial, or health-related reasons. This phenomenon raises critical questions about the long-term economic mobility and well-being of the German population.
The association is now leveraging the study’s findings to advocate for increased housing construction and a repeal of rent control measures, such as the controversial “Mietpreisbremse” (rent brake). Critics, however, are likely to argue that more aggressive interventions are needed to address the root causes of the affordability crisis, suggesting that simply increasing supply may not be sufficient to alleviate the pressure on struggling renters. The debate underscores the deepening housing affordability challenges facing Germany and the complex political solutions required to tackle them.