Dortmund housing market faces pressure from rising rents and low mobility

The housing market in Dortmund is facing significant pressure, with the number of residential moves in 2025 reaching its lowest level in over 40 years. According to the 2025 housing market report released by the city, a ‘lock-in effect’ is occurring as tenants avoid moving to escape much higher rents associated with new lease agreements.

Average rents for existing apartments rose by 3.7 percent to 9.30 euros per square meter, while new builds averaged 13.71 euros per square meter, a 3.1 percent increase. This trend is particularly pronounced in the large apartment segment. The shortage of new construction, declining building permits, and insufficient subsidies continue to exacerbate the supply-demand imbalance.

Across the wider Ruhr region, the real estate landscape shows mixed signals. While office markets in Essen and Dortmund remain fragmented with a lack of large-scale deals, the number of foreclosure appointments is rising in cities like Duisburg and Essen due to high interest rates. In the corporate sector, LEG Immobilien reported a vacancy reduction to 2.3 percent, while Vonovia confirmed its annual targets with a 1.8 percent increase in portfolio value.