Rent in Germany: rising prices and housing shortages by 2035!

Rent in Germany: rising prices and housing shortages by 2035!

In 2025, rental prices in Germany are under intensive observation. The profitability for rental apartments and property is influenced by various factors that show a clear tendency: living is becoming increasingly expensive. While new apartments are offered in some regions below ten euros rent per square meter, there are also placements that alarm. For example, the adjusted offer rent in the district of Kleve is 9.95 euros per square meter in the first quarter of 2025, which catapults the district of Kleve to the 328th place of 409 cities and counties in Germany, reports RP-Online .

In contrast, the picture is shown in cities like Munich, where the most expensive rental price region prevails. There you get not even half a square meter of living space for 9.95 euros. This gap between supply and demand illustrates the tense market Situation, which has become increasingly clearer in recent years.

nationwide rental price development

like the ftd , rents in major German cities have increased continuously for over a decade. Cities such as Munich, Frankfurt and Leipzig are particularly affected. The Federal Statistical Office rental price index reached 107.5 points in 2024, which corresponds to an increase of 7.5 % since 2020. It is particularly concerned that rents in the top cities rose by 21 % between 2005 and 2022, while inflation was only 13 %.

For the year 2025, another increase in rental prices is forecast. Experts expect price increases of 4 to 5 %, which could lead to an average rental price of around 11.40 euros per square meter. This means that for a 69 m² apartment, costs of around 786.60 euros are incurred. Due to these developments, households with low income are most affected because they have even less access to affordable living space.

new building and market situation

The situation on the housing market is also burdened by the weak new building. In 2024, only about 260,000 new apartments were completed, despite a set target of 400,000. A completion of only 150,000 to 200,000 new units is expected for 2025. This development is due to significantly increased construction costs: material prices have increased by 34 % since 2021 and wages in the construction industry by 18 %.

The long -term forecast provides for rental prices rising for the coming years. By 2035, these could increase by 30 to 50 %. The rental price brake, the extension of the legal regulations around the rents, also remains a controversial topic. The urgency for a reform on the housing market, through faster housing and creation of more funded living space is becoming increasingly clear.