Living in Munich: The rents are really that high!

Living in Munich: The rents are really that high!

Munich is considered the most expensive city in Germany to live in, and the situation on the rental market is putting great strain on households. A current survey shows that singles are particularly affected, as they often have to pay over 40% of their income for rent. Almost two thirds of the middle class in the Isar metropolis even need over 30% of their income to cover their rent obligations. Angela Lutz-Plank, managing director of the tenants' association, described the 30% mark as not very realistic for Munich and it is difficult to disagree with that. According to tz, nine districts are particularly affected, including Feldmoching-Hasenbergl, Milbertshofen-Am Hart, and Ludwigsvorstadt-Isarvorstadt.

The rent burden in Munich is not just an individual problem, but affects many people in the city. According to the Statistical Office of the City of Munich, 27.4% of the population spends more than 40% of their income on rent, which is considered dangerously high. Around 12.1% even pay more than half of their income. On average, tenants still have a residual income of 2,300 euros after deducting the rent - which is often not enough to lead a decent life. abendzeitung reports that the average housing cost burden rate in Munich is 32.7%.

Contaminated neighborhoods

Blue skies and beautiful weather often hide the harsh reality: in districts like Hadern and Sendling the situation is different. For example, 33% of residents in Feldmoching-Hasenbergl have high housing costs. But rents are also oppressively high in Milbertshofen-Am Hart and Freimann. In contrast, rents in Aubing-Lochhausen and Obermenzing are comparatively moderate and burden less than 10% of the residents there.

It is noteworthy that single-person households - which make up 53% in Munich - are disproportionately affected by the rent burden and spend on average 40% of their income on housing. This makes them the most vulnerable group in the housing market. Stephan Kippes from the IVD real estate association recommends that apartment hunters not only look for a place to stay in a specific area, but also consider other options.

The future of rental prices

The general development of rental prices does not bode well. An analysis shows that asking rents in major cities have increased by around 55% from 2010 to 2022, while net rents for existing tenancies have increased by 19% since 2010. The rent burden remains a real challenge for many, especially low-income households. [DIW]. A quarter of respondents may slip into the critical zone of 40% or more when moving.

Politicians are called upon to act. There are no simple solutions, but strengthening social housing and possibly increasing housing benefit could be effective measures. In view of the constantly rising rent prices, it is of central importance to many Munich residents that the housing market remains fair and accessible to everyone.