Smaller cities at the top
Where rents are rising fastest
September 24, 2023, 10:34 a.m
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The housing market crisis has long been a problem for metropolises and their surrounding areas. That is now over: Last year, rents rose particularly quickly in smaller cities where living space was still affordable.
According to data from the federal government, asking rents are rising significantly more in some smaller cities than in major cities. The leader in rent increases last year was Delmenhorst in Lower Saxony with an increase of 13.2 percent, followed by Worms in Rhineland-Palatinate with an increase of 12.2 percent and Weiden in the Upper Palatinate in Bavaria with an increase of 11.7 percent. This emerges from the response of the Ministry of Construction to a request from the left-wing Bundestag member Caren Lay.
The ministry refers to an evaluation of advertisements from real estate platforms and newspapers for first-time and re-letting of apartments in new buildings and existing buildings in sizes of 40 to 100 square meters. Tenants who change apartments are affected. The required net rent was compared. Nationwide, the value rose by an average of 3.5 percent to 9.83 euros per square meter in 2022 compared to the previous year.
Many cities are still cheap despite the increase
However, some cities have a much higher percentage increase. Following Delmenhorst, Worms and Weiden are Rostock, Lübeck, Schweinfurt, Hof, Flensburg, Solingen and Mülheim an der Ruhr. Despite the increase, some of these cities remained below the national average for net rent because living there was previously very cheap. The average value in Hof was only 6.66 euros in 2022, and in Mülheim it was 7.81 euros per square meter. However, Lübeck (10.30 euros) and Rostock (10.17 euros) were more expensive than average.
“It is alarming that rents are now rising where they were previously affordable,” noted Lay, the Left’s housing policy spokeswoman. “The rental craze is spreading and reaching smaller towns and rural areas.” Before the housing construction summit in the Chancellery on Monday, she called for countermeasures. “The federal government must now prevent further rent increases by stopping rents.”