Residents of Munich typically fork over around two-thirds of their earnings
The soaring rents in Munich are putting a strain on numerous households, with many singles shelling out over 40% of their income on rent. While some districts offer respite, the city is notoriously known for its exorbitant housing costs.
Munich - In this pricey city, it's not uncommon for rents to gobble up almost half of a person's income. A recent survey revealed that 15% of Germans find themselves in this situation, with the trend being particularly prevalent in Munich, Germany's costliest city for accommodation.
Even among middle-income earners, tightening belts is a common practice, with almost two-thirds needing over 30% of their income for rent. Financial experts suggest that this proportion should not exceed 30%, but Angela Lutz-Plank, managing director of the tenants' association, considers this an unrealistic benchmark in Munich, especially in districts like Feldmoching-Hasenbergl where many residents have low incomes. Districts like Milbertshofen - Am Hart, Freimann, Laim, Hadern, Thalkirchen-Obersendling, and Ludwigsvorstadt-Isarvorstadt follow suit.
Rich and Poor in a Single Quarter
Munich's housing map reveals a striking contrast: wealthy residents coexist with those barely scraping by in the same quarter. An Immowelt analysis from 2024 validates this, stating that Munich tops the list of cities with the highest housing burden.
For singles, the situation is dire; they make up 53% of the city's population, yet they pay 40% of their income on rent. Fortunately, there are areas like Obermenzing where residents enjoy a reasonable rent and a decent income. Bogenhausen and parts of Milbertshofen - Am Hart or Thalkirchen-Obersendling also offer some relief.
Stephan Kippes from the IVD real estate association recommends apartment seekers not to limit their search to a single quarter.
Stories from the Ground
Berkin Serin (27)
A student living in a 15-square-meter dorm room shares a bathroom but pays 383 euros per month. Before getting a spot in this dorm, Berkin lived in a WG in Garching and paid 650 euros, which was more than half of his income. Without financial reserves, studying in Munich would have been impossible.
Regina H. (30)
Regina shares a 75-square-meter attic apartment in Trudering with her boyfriend, paying 1500 euros, and additional costs for electricity and internet. With a net income of 2200 euros, she couldn't afford the apartment alone. By sharing the rent, she pays a bit over 750 euros. Without this arrangement, she would either need an additional job or a change in her job.
Munich's high rents present a significant challenge, especially for those living alone and those on low incomes. Finding affordable accommodations is becoming increasingly difficult in this expensive city.
Enrichment Data
- Renting in Munich: Munich is notorious for its high rents, with an average rent per square meter of approximately 19.8 euros as of 2024. Property prices in Munich also rank as the highest in Germany, averaging around €8,237-€8,252 per square meter.
- Property Prices in Munich: Munich consistently ranks as the most expensive city for buying property in Germany, with average prices of around €8,237-€8,252 per square meter.
- Comparison of Districts: Districts close to the city center tend to be more expensive due to their proximity to amenities and transport links. Conversely, outlying districts or those with less access to central areas might be more affordable.
- Housing Shortage in Germany: The severe housing shortage across Germany, including Munich, contributes to rising rents and property prices, making affordability a significant challenge.
In Munich, the high rents often consume almost half of a person's income, making budgeting for personal-finance a crucial concern, especially for those living alone or on low incomes. Despite some districts offering relief, the city remains notoriously expensive, and finding affordable accommodation is increasingly challenging.
