A widening gap between existing rental contracts and soaring new lease prices is creating a significant economic disincentive for relocation across Germany, a new study by the landlord association Haus & Grund reveals. The research, reported by Handelsblatt, highlights how many households, particularly those in major urban centers, are exceeding the government’s definition of “affordable” housing – a threshold of 30% of household income dedicated to rent – immediately following a move.
Berlin emerges as the most challenging city for renters transitioning to new housing in 2024. Families now face net cold rent payments exceeding 32% of their income post-relocation, while single individuals are burdened with a staggering 41.9%. This trend isn’t limited to the capital; Munich (41.2%), Offenbach am Main (40.2%), Frankfurt am Main (38.2%) and Freiburg im Breisgau (36.3%) also demonstrate strikingly high rental burdens for single occupants.
Across Germany, families with children are, on average, allocating 19.4% of their income to net cold rent following a move, while single individuals are paying 26.3%. The divergence is attributed to a rapidly escalating market where “offer rents” – the advertised prices for new listings on property portals – contrast sharply with relatively stable “stock rents” for existing lessees.
Haus & Grund characterizes this situation as a “lock-in effect” where the financial implications of moving actively discourage relocation even when driven by professional, familial, or health needs. The association’s findings raise critical questions about the efficacy of current housing policies and the long-term mobility of the German workforce.
While the landlord group advocates increasing housing supply, they also strongly criticize rent control measures like the “Mietpreisbremse” (rent cap), arguing they exacerbate the issue by disincentivizing new construction and further contributing to the scarcity driving up offer rents. The study’s conclusions will undoubtedly fuel debate about the balance between tenant protections and the need to stimulate housing investment, particularly as younger generations and single individuals face increasing challenges in securing affordable housing options.
