Munich faces intense rental demand and housing shortages

Rental demand in Germany is increasingly concentrating in metropolitan areas. According to the ImmoScout24 WohnBarometer, inquiries for rental apartments rose by 6 percent in the eight major metropolises and 7 percent in independent cities during the third quarter of 2026, while demand in rural areas declined.

Munich remains one of the most expensive markets. A 70-square-meter apartment in Munich costs approximately 1,414 euros cold per month in existing stock, while new builds can reach 1,930 euros. In contrast, Leipzig remains the most affordable major city with rents around 636 euros for a similar size.

The shortage of space is creating significant social challenges, particularly for large families. In Munich, families with many children face extreme overcrowding and long waiting lists for social housing, sometimes exceeding 12 years. Advocates note that inadequate living space can hinder children's educational opportunities and development.