According to a recent assessment by the German Institute of Economic Research (IW), the residents of Heilbronn possess the highest purchasing power in Germany. The IW announced this finding on Sunday, after adjusting official income data for regional price variations. Heilbronn topped the ranking, despite having been in the middle of the pack the previous year. This top position is attributed to revised income data indicating that profits generated by commercial businesses played a significant role in Heilbronn. In good years, these profits account for almost 50 percent of the gross revenue, compared to just under eleven percent in Baden-Württemberg on average, though the authors note that only a small fraction of the city’s inhabitants are likely to benefit from this.
The district of Starnberg ranks a close second. Here, the nominal average income per resident is reported by the IW to be over 44,500 euros. However, due to the high cost of living, which is almost 14 percent above the national average, the actual purchasing power equates to only 39,200 euros when adjusted to German average prices. Interestingly, several regions near economically strong metropolises, which are themselves attractive for tourism, also displayed high purchasing power. For example, the Munich hinterland, represented by the Miesbach district, ranks fifth, while the Hochtaunus district, near Frankfurt, achieves eighth place.
The bottom of the ranking is occupied by “structurally weak cities” such as Herne, Bremerhaven, Duisburg, Gelsenkirchen, and Offenbach. Many large cities also perform poorly due to high housing costs. Stuttgart is placed around 249th, significantly ahead of Hamburg, Cologne, Frankfurt, and Berlin. Only Munich and Düsseldorf show relatively strong scores. Furthermore, the largest cities in the former East Germany, Dresden and Leipzig, also achieved lower positions.
