Rent a burden for half of German tenants as costs deter relocating

Rent remains a significant burden for many households in Germany, with just over half of tenants surveyed (52%) describing it as a large or very large financial strain, according to a representative survey by the Allensbach Institute commissioned by property company Heimstaden.

As a result, people are staying in their homes for ever longer periods - now an average of 18 years. "Apparently, fear of more expensive new rental contracts is causing many tenants to hold on to their old homes with comparatively lower rents," the study published on Monday said.

Moving is expensive

In 2016, 40% of tenants had lived in their home for less than five years; today that figure is just 26%. Some 24% have lived in the same home for 20 or more years, six percentage points more than in 2019.

This means that rents paid by those surveyed have risen more slowly over the past 10 years than consumer prices overall. Rents including service charges for existing tenancies rose by 20% to €807 ($925) per month, while consumer prices rose by 28%.

By contrast, new tenancy rents rose far more sharply in many places, according to data from the Federal Institute for Research on Building, Urban Affairs and Spatial Development.

In Hamburg and Munich, rents have risen by nearly half since 2016; in Berlin, by two thirds.