Immobilien: Mietsteigerung: In diesen Großstädten wird es besonders teuer – Regional unterscheidet sich Entwicklung deutlich

For German renters searching for homes, there is no immediate reprieve as rental prices for newly signed lease agreements have risen by 3.5% nationwide in the third quarter of 2026 compared to the same period last year, according to the latest real estate price index from the German Pfandbrief Banks Association (VDP). This upward trend continues in Germany's housing market.

However, the rise in rental costs outpaces the stagnation in residential property prices. While buyers face lower price growth for new properties, rents for new homes continue to increase. The divergence between the rental and purchase markets has become pronounced as financing costs dampen demand for homeownership while pressure persists on the rental market.

The VDP attributes this primarily to a significant shortage of available housing. VDP Chief Executive Jens Tolckmitt notes that the scarcity of housing is supporting residential property prices despite the continued high demand for housing. In Germany's major cities, the situation is worsening, with rents in cities like Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, and Stuttgart rising by an average of 3% compared to last year's quarter, slightly below the national average.

However, regional differences are evident. The largest increase was in Hamburg, where rental prices rose by 4.1% within a year, while Stuttgart saw the smallest increase at just 1.4%. Although rental prices in major cities are growing somewhat slower than the national average, many large cities are still above the national average.

Nonetheless, this does not indicate a relaxation in the market, as the rental level in many large cities is already notably higher than the national average. The figures pertain to newly signed rental contracts, and existing tenants are not directly affected by the reported increases. Several factors contribute to the separation of the rental and purchase markets, according to experts.

The primary reason is the persistent housing shortage, particularly in economically strong metropolitan areas, where demand far exceeds the available supply. Additionally, higher financing costs hinder the construction and acquisition of new properties. Many households that initially sought to purchase a home or house remain on the rental market due to these factors, which in turn intensifies competition for available housing.

The divergence in the rental and purchase markets is attributed to several causes, including the ongoing housing shortage. In economically vibrant agglomerations, demand significantly exceeds the available supply, while increased financing costs impede new construction and property acquisition. Many households that initially intended to buy a residence or house remain on the rental market due to these factors, intensifying competition for available housing.

However, higher mortgage rates are also significantly slowing the price dynamics on the purchase market, even in Germany's seven largest real estate metropolises. While residential property prices in Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, and Stuttgart rose by an average of 1.4% in the third quarter of 2026 compared to the previous year, they rose by 2.4% in Hamburg, 1.6% in Frankfurt, and 1.4% in Cologne.

In Stuttgart, residential property prices were already 0.5% below the previous year's level. The trend in residential property prices has recently stalled, with a decline of 0.4% to 0.9% in the seven metropolitan areas compared to the second quarter of 2026. This latest recovery in real estate prices is expected to give buyers new negotiation leverage, although a sustained trend toward significantly lower real estate prices cannot be ruled out given the continued positive annual growth rates.