Data from the Berlin-based research institute Empirica indicates a significant increase in advertised rental prices across Germany since the beginning of 2022, averaging a rise of 18.3%. The findings, reported by “Der Spiegel”, highlight a growing challenge for renters nationwide.
The primary driver behind this surge is the series of interest rate hikes implemented by the European Central Bank (ECB) since 2022. These measures were intended to curb inflation, which had escalated dramatically following the onset of the war in Ukraine. Simultaneously, higher construction loan interest rates have prompted many residential development companies to halt or postpone their projects, severely limiting the supply of new housing units.
This constrained supply coincides with increased demand. Prospective homebuyers, facing difficulties securing financing, have been increasingly entering the rental market. Furthermore, the arrival of over one million Ukrainian refugees seeking shelter has added considerable pressure on the existing housing stock.
The impact has been particularly pronounced in Berlin, where advertised rents have increased by a staggering 42% since 2022. The average asking price now stands at €14.90 per square meter – a significantly sharper increase compared to cities like Munich or Hamburg. The difference between these advertised rents and the local comparable rental rates in Berlin remains substantial, standing at a comparatively modest €7.21 per square meter in 2024.
Berlin’s Senator for Urban Development, Building and Housing, Christian Gaebler, recently described the situation as a “divided housing market” reflecting a widening disparity between those already secure in affordable housing and those struggling to find accommodation amidst escalating prices.
The trend extends beyond major urban centers. Medium-sized cities and rural regions are also experiencing a boom in rental costs. The district of Kaiserslautern has seen the second-highest increase, with rentals rising 41.7% since early 2022. Closely following are Cottbus (41.3%), the district of Tirschenreuth (32.3%) and the city of Brandenburg an der Havel (33.2%). The underlying reasons for this expansion in smaller locales remain unclear, although it may suggest a broader migration pattern as individuals are priced out of larger, more expensive cities.
