The current report on the housing situation in Munich for the years 2024 and 2025 has been presented to the City Council's Committee for Urban Planning and Building Regulations. With this, the Department of Urban Planning and Building Regulations has published the 20th comprehensive presentation of the most essential key figures and developments in the Munich housing and property market. This publication not only sheds light on the dynamics of supply and demand but also on price developments for rents and purchase properties. Furthermore, the city of Munich's commitment to housing construction and the protection of affordable housing is detailed.
The general conditions for privately financed and especially for subsidised housing construction remain challenging. High material and construction costs, as well as increased construction interest rates, burden stakeholders. The general shortage of skilled workers in the construction sector leads to delays in project completion. At the same time, the unclear financing of state housing construction subsidies and the necessity for municipal budget consolidation complicate the planning and realisation of public welfare-oriented and private housing projects. A relaxation of rental prices is not foreseeable given the persistently high demand.
Demographic Development and Housing Needs
During the reporting period, Munich recorded continuous population growth, driven by a birth surplus and a positive migration balance. In 2025, approximately 1.6 million people lived in about 887,000 households in Munich. An estimated 75 percent of this population group resides in rental apartments. The increasing demand for independent living space is intensified by an increase in households and a high proportion of single-person households; 55 percent of households are single-person households, and the average household size is 1.8 persons.
The municipal population forecast predicts that by 2045, the number of residents with a primary residence will exceed 1.8 million. This results in a continuous need to provide the population with adequate and affordable housing, which is considered a central housing policy task for the city.
Municipal Initiatives and Successes
The basis of the city's housing policy strategy is the 'Housing in Munich (WiM)' action programme, established over 30 years ago and continuously developed. The city's efforts are also manifest in concrete figures: Over the last ten years, approximately 98,000 building permits have been issued in Munich, and planning permission for around 27,000 dwellings has been created. At the end of 2025, the urban area comprised 36 preservation statute areas, where approximately 339,300 residents lived in about 204,400 dwellings. Through consistent enforcement of the Misappropriation of Dwellings Act, almost 2,300 housing units have been returned to the regular housing market in the past five years. This report serves as a factual basis for politics, administration, and all stakeholders in the property market.
