Rental prices in Germany are rising - Housing supply has shrunk significantly in many areas
According to a study by the Cologne Institute of Economics (IW), rental prices in Germany have increased significantly recently. Rents offered on the market were 4% higher nationwide in the second quarter of 2026 compared to the same period last year.
The strongest growth was recorded in large cities outside the main metropolises, where rents rose by 4.9%. In Germany's seven largest cities, Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf, growth was more moderate, at 2.9%.
However, there are significant differences between these cities. In Cologne, rents increased by 7.9%, while in Hamburg by 5.5%. Significantly lower increases were recorded in Stuttgart, by 0.9%, and in Berlin, by just 1%.
According to experts, the supply of rental housing has shrunk significantly in many areas. The number of announcements and offers for rental housing is almost 12% lower than at the beginning of 2022. In this respect, large cities also stand out: in Hamburg, the supply of rental housing has halved, while in Frankfurt am Main the number of announcements was 43% lower.
According to experts, many people continue to live in apartments that no longer suit their living needs, that is, they are either too big or too small, as they do not want to give up their favorable rents.
The situation in the housing market is different. According to the analysis, prices have increased moderately. Both owner-occupied housing and single- and two-family homes increased in price by 0.8% nationally compared to the same quarter last year.
Here too, regional differences are large. In Dortmund, prices rose by 5%, while in Munich they fell by 1.9%.
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