Purchase prices for residential properties in Germany saw a slight increase of 0.6 per cent in 2025. Concurrently, the nominal average household income across all 400 districts and independent cities rose by 9.4 per cent since 2024. This development led to a reduction in the average income burden associated with homeownership. In 2025, an average of 17.2 per cent of household income was required for the ongoing loan financing of a 70-square-metre existing flat, down from 18.4 per cent in the previous year. The income burden for renters also decreased, albeit to a lesser extent. On average, they paid 13.5 per cent of their household income for the net cold rent of a comparable flat, compared to 14.1 per cent in the previous year.
These core findings come from the “Postbank Housing Atlas 2026”, a study conducted by experts from the Hamburg Institute of International Economics (HWWI) on behalf of Postbank. The analysis reveals that acquiring a property can be financially more advantageous than renting in various regions. Currently, 30 per cent of German households live in regions that qualify as very affordable locations for buying. In 160 districts and independent cities, less than 15 per cent of the average regionally available household income is sufficient to cover the ongoing loan payments for a 70-square-metre existing flat.
This calculation is based on an annuity loan covering 80 per cent of the purchase price, the land transfer tax, and two per cent notary fees. The initial repayment rate amounts to 2.42 per cent, and the loan interest rate is 3.75 per cent per annum. The number of these affordable regions has increased significantly compared to the previous year; in 2024, there were 130 such regions. In contrast, 20 per cent of German households live in 38 regions with very high purchase prices, where at least 25 per cent of household income must be spent on financing. The situation here has eased compared to 2024, when 25 per cent of households were affected in 56 regions.
The 25 per cent threshold is based on the recommendation that private households should spend a maximum of 30 per cent of their income on housing costs, including utility charges. This implies that the 25 per cent mark should be aimed for regarding net cold rents and annuity payments. Manuel Beermann, Head of Product Management Real Estate for Private Customer Banking in Germany, notes that the comparison between renting and buying is again favouring homeownership in many regions. This trend is driven by moderately rising purchase prices and simultaneously growing incomes, while rents are increasing more sharply. This improves the chances for employees with average earnings to acquire an owner-occupied flat, the financing of which ideally ties up a quarter of the net household income. The very high-priced regions remain an exception.
- —Nordfriesland district (45.7 per cent)
- —Munich (41 per cent)
- —Berlin (39.5 per cent)
- —Hamburg (37.8 per cent)
Particularly in Germany's seven largest metropolitan areas ("Big 7") and in holiday regions, the purchase of a 70-square-metre existing flat continues to claim a high proportion of the regionally available household income. The Nordfriesland district achieves the highest value at 45.7 per cent, followed by Munich (41 per cent), Berlin (39.5 per cent), Hamburg (37.8 per cent), and Frankfurt am Main (36.2 per cent). Holiday regions such as Aurich (37.8 per cent), Miesbach (34.4 per cent), and Garmisch-Partenkirchen (34.4 per cent) also show high burdens. In Potsdam, the income share for purchasing increased as the only region in the top 10 compared to the previous year, from 34.7 per cent to 36.9 per cent.
Regarding the rental burden, 23 per cent of German households live in 124 affordable regions where less than 12 per cent of household income is needed for the net cold rent of a 70-square-metre flat. In contrast, 27 per cent of households are in 60 rental regions classified as high-priced, where an average of 16 per cent or more of income must be spent. The rental burden is particularly pronounced in major cities. Berlin and Munich lead the ranking with an average of 24.5 per cent of household income each, but are just below the 25 per cent mark.
However, purchasing an owner-occupied flat places a significantly higher burden on household income in major cities than renting. The largest additional burden in 2025 was observed in Hamburg with a difference of 16.9 percentage points. Potsdam followed with 16.8 percentage points, Munich with 16.5, and Berlin with 15.0. Significant differences were also evident in Frankfurt am Main (13.4), Regensburg (12.0), Rostock (11.8), Heidelberg (10.8), and Lübeck (10.6). In total, 20 per cent of households live in 44 regions where buyers have to spend at least eight percentage points more of their income on housing than renters.
