The supply is not growing fast enough. The demand, on the other hand, is enormous: times for tenants in Frankfurt remain tough.
Frankfurt – No end to the housing shortage in Frankfurt: According to a study by immowelt, rents in large cities in Germany have risen again in recent years. However, the increase in demand from potential tenants is even greater.
The reason for the experts: Too few apartments are simply being built. “Studies assume that Germany needs around 700,000 new apartments every year in order to meet demand and take the pressure off the housing market. However, not even the target of 400,000 new apartments set by the federal government is currently being achieved, as only around 200,000 apartments are currently being built per year,” explains Thomas Schäfer from immowelt.
Rental apartments in Frankfurt: Slight increase at a high level
The situation in Frankfurt is as follows: In the Main metropolis, asking rents rose by two percent in the fourth quarter of 2022 compared to the same period last year. That is – compared to 14 other big cities in Germany – still reasonably moderate. In Düsseldorf, Nuremberg and Dortmund the increase was six percent, in Berlin and Dresden square meter prices even went up by seven percent. Only in Munich did advertised rents fall by one percent – albeit at the highest level in all of Germany.
Ultimately, that seems to be the trend: in many expensive cities the increase is less high or – as in Munich – even negative. According to the study by immowelt, tenants in Frankfurt should now pay 12.21 euros per square meter. In Dresden it is only 7.24 euros.
High rents in Frankfurt could create a lock-in effect
In contrast, Frankfurt, Munich and Leipzig are at the top of the list of cities in another area examined. Here, immowelt examined the demand for rental properties. In other words: How many inquiries about objects are there on average on the portal? An increase of 107 percent was measured in the Main metropolis. The value was only higher in Leipzig with 132 percent. In Hanover, the value rose by only 26 percent. However: The value is likely to increase or decrease with the relevance of immoscout in the respective region.
One thing is certain: The Times for tenants in Frankfurt and other cities in Germany are not easy.
Thomas Schäfer from immoscout explains a consequence: “The high rent level coupled with a shortage of housing and drastically increased heating and ancillary costs are increasingly causing lock-in effects. Many people can no longer afford to move because the prices for new rentals are disproportionately higher – even when moving to a smaller apartment. They therefore remain in their cheaper ones.” (fd)
