In Germany, rent is rising four times faster than wages, reports Immowelt

Over three years, real wages in Germany increased by only 5.1%, while asking rents in major cities rose by 20%. The sharpest increases were seen in Hamburg (+20.2%), Dresden (+18%), and Frankfurt (+17.7%). In Munich, the average rent reached 21.44 euros per square meter. The main reason is a severe housing shortage. In 2025, only 206,600 apartments were built—18% fewer than the previous year and far below the target of 400,000.