Germany housing market faces rising rents and shortages

Germany is experiencing significant shifts in its housing market, characterized by rising rents and a shortage of affordable living spaces. In Chemnitz, once known for low rents, modern apartments are now reaching prices of 12 to 15 euros per square meter as vacancy rates drop.

In Leipzig, the market is seeing a surge in expensive furnished apartments. Data indicates that while the supply of regular unfurnished housing has decreased by one-fifth since 2015, the availability of furnished units in larger cities has more than tripled. To address market changes, the City of Leipzig is launching a digital survey for large-scale landlords to prepare the 2027–2029 rent index.

Regional pressures are also evident in Mecklenburg-Vorpommern. In cities like Stralsund, rising tourism and migration have driven rents up, with some three-room apartments costing as much as 1,600 euros, creating difficulties for local families and workers.