Living in German cities has become cheaper – tagesschau.de

Rents in Germany rise – and yet the people in German cities have to spend relatively less money on housing. Reason is the increase in income, so an IW study. But there are also losers of development

Housing has become cheaper in German cities according to a study -. Not in absolute terms, but in relation to income. Because the rose on average faster than rents. This emerges from a study by the Institute of the German Economy (IW), which looks at the past five years. The net rents decreased accordingly in relation to purchasing power except in Berlin and Stuttgart in all major German cities.

Especially earners benefited from the relatively favorable development in the housing market. By contrast, students, unemployed and pensioners would more heavily than in the past, said the real estate expert of the Institute, Michael Voigtländer. . Because their income did not increase in the period

According to the IW study the purchase of residential property is now long term cheaper than rent – at least in the studied cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Dusseldorf. But this is only a part of the population benefited. Only those who bring along enough equity, could benefit, according to the study.

rental and purchase prices remain in the big cities but still higher than the national average. Even when adjusted for purchasing power to pay for their rent Munich about 50 percent more than the average tenant or householder.