The Germans are planning less money for cold rent

ImmoScout24

Berlin (ots)

ImmoScout24 analysis of the correlation between income and rent

A current data analysis by ImmoScout24 shows how the percentage of income that people looking for a new home allocate to the cold rent changes within a year in major German cities:

  • To cope with inflation and rising energy costs, those looking for an apartment plan to spend less money on the cold rent of a new apartment than a year ago.
  • In Halle (Saale), Chemnitz and Cottbus, those looking for an apartment rate up to seven percentage points less for the cold rent of a new apartment compared to the previous year.
  • In 32 out of 80 larger German cities, however, it is those who want to rent more than the recommended 30 per cent.

Inflation and especially rising energy costs mean that many households have less and less money to live on. To cope with these rising costs, renters are cutting back when looking for a new home and budgeting less of their disposable income for the cold rent of a new apartment than they did a year ago. This shows a current evaluation from ImmoScout24.

“From the contact inquiries that have been made via ImmoScout24, we can see that in many places a smaller proportion of their disposable income is recognized for rent this year than the year before.” explains Dr. Thomas Schroeter, CEO of ImmoScout24. “When the general cost of living rises, there is less left to rent. With rental prices rising at the same time, people are increasingly looking for smaller apartments or outside big cities and urban areas. Politicians are encouraged to enable affordable housing in the already tight rental market and ease the burden of price increases.”

Up to seven percentage points less for the rent

The rent share fell the most compared to the previous year in Halle (Saale) with minus 4.0 percentage points, in Chemnitz with minus 4.2 percentage points and in Cottbus with minus 6.9 percentage points. In a further 14 of the 80 large cities considered, the calculated rental share falls by two to three percentage points within a year. In 36 cities with more than 100,000 inhabitants, those looking for housing in the first half of 2022 plan to spend between one and two percentage points of their disposable income less than in the first half of last year. Only in nine out of 80 major German cities is the share of cold rent stagnating or rising slightly. For example, in Gelsenkirchen with plus 1.4 and in Karlsruhe with plus 1.6 percentage points compared to the first half of 2021.

The rent makes up a quarter to a third of the income

How high the rental share of income that apartment seekers plan for a new apartment is very different when comparing the 80 big cities. The five cities in Germany with the lowest rent share are Chemnitz in Saxony, Jena in Thuringia, Cottbus in Brandenburg, Magdeburg in Saxony-Anhalt and Schwerin in Mecklenburg-Western Pomerania. In these East German cities, those looking for apartments are applying and the cold rent, which makes up about a quarter of the household’s net income. In a comparison across Germany, Chemnitz is therefore the most affordable city in Germany. With a third of income, the rent share in Germany is highest in the cities of Munich, Wiesbaden, Oldenburg (Oldenburg), Heilbronn and Stuttgart. In 32 out of 80 major German cities, those looking for a home are calculating more than the recommended 30 percent of their net household income for basic rent, despite rising energy costs.

method

The rent share describes the average ratio between the net household income that apartment seekers state in their ImmoScout24 profile and the gross rent without mileage for the apartments that the seekers contacted via ImmoScout24. All ads for rental apartments in the 80 largest German cities with more than 100,000 inhabitants in the first half of 2022 were compared. The rental share calculated in this way for the first half of 2022 is compared to the rental share in the first half of 2021. The requested rents give the average rent per square meters for existing rental apartments in the second quarter of 2022.

Please see the report on our website for data on the 80 largest German cities.

Press contact:

Johanna Fitschen
Junior PR manager
Telephone: +49 30 24301 1270
Email: pr@immoscout24.de
www.immoscout24.de

Original content by: ImmoScout24, transmitted by news aktuell

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