Medium-sized cities: rents rise by up to 20 per cent but remain a cheaper alternative to major cities

Rents in Germany’s medium-sized cities have risen significantly over the past four years. A recent analysis of 120 selected cities by the online marketplace immowelt shows that asking rents for existing flats have increased by up to 20 per cent since 2022. Rents rose by at least 10 per cent in 97 of the 120 medium-sized cities examined. These increases have occurred against a backdrop of generally high inflation since the outbreak of the war in Ukraine four years ago. Inflation was around 15 per cent over the same period, while prices charged by tradespeople rose even more sharply (+28 per cent). Despite what have sometimes been significant rent increases, many medium-sized cities still offer affordable alternatives to expensive major cities. The analysis compared average asking rents for existing flats (75 square metres, three rooms, first floor, built in the 1990s) in 120 selected German medium-sized cities on 1 April 2026 and 1 April 2022.

“High demand for rental housing combined with limited supply is causing noticeable rent increases in many medium-sized cities,” says immowelt CEO Theo Mseka. “The sharp rise in the cost of tradespeople is placing an additional burden on many landlords and putting further upward pressure on rents. At the same time, however, people looking for a home in many medium-sized cities continue to benefit from lower rents than in expensive major cities.”

Rents in medium-sized cities up to 50 per cent lower than in major cities

Although rents have sometimes risen significantly, many medium-sized cities still offer considerable savings compared with expensive major cities. This is particularly apparent in Munich’s commuter belt. While people searching in the Bavarian capital pay an average of almost 21 euros per square metre for an existing flat, asking rents in Rosenheim (11.29 euros; +13.1 per cent) and Landshut (10.87 euros; +13.1 per cent) are only around half as high. Both medium-sized cities are less than an hour from Munich by train.

The situation is similar in medium-sized cities around Berlin. Rental flats in Brandenburg an der Havel (8.75 euros; +8.4 per cent) are almost 40 per cent cheaper than in the capital (14.23 euros). In Oranienburg (11.68 euros; +11.8 per cent), less than half an hour from Berlin by train, people looking for a home still save almost 20 per cent.

Near Stuttgart (15.04 euros), Ludwigsburg (12.45 euros; +6.9 per cent) and Esslingen (11.18 euros; +7.8 per cent) offer affordable alternatives, while rental flats in Hanau (11.17 euros; +12.4 per cent) are significantly cheaper than in Frankfurt (16.55 euros).

Increases of up to 20 per cent in four years

Looking at rent trends since 2022, the largest increases are found in North Rhine-Westphalia and Lower Saxony. At 20.0 per cent, Castrop-Rauxel records the strongest rise of all the cities examined and is increasingly approaching nearby Dortmund’s price level. Nevertheless, with an average asking rent of 7.33 euros per square metre, the Ruhr city remains affordable. The sharp percentage increase can therefore also be explained by its low starting point.

Rental flats have become almost as much more expensive in the North Rhine-Westphalian cities of Bocholt (8.75 euros) and Kleve (8.42 euros), and in Nordhorn in Lower Saxony (8.52 euros), each up 19.9 per cent. All three cities are directly on the border with the Netherlands, which could suggest that they are becoming increasingly attractive to cross-border commuters. In general, the significantly higher level of rents in the Netherlands encourages people seeking homes in the neighbouring country to move to cheaper places near the border in Germany, thereby contributing to rent increases there.

Highest rents in Bad Homburg, lowest in Plauen

Bad Homburg vor der Höhe in Hesse tops the rent ranking of the 120 medium-sized cities examined. The average asking rent for an existing flat in the affluent spa town in Frankfurt’s commuter belt is 13.09 euros per square metre (+11.1 per cent). It is followed by Konstanz on Lake Constance (12.88 euros; +14.2 per cent) and Sindelfingen south of Stuttgart (12.52 euros; +12.4 per cent).

By contrast, tenants pay the lowest rents in several medium-sized eastern German cities. Plauen in Saxony has the lowest average asking rent, at 5.83 euros (+9.9 per cent), while Zwickau (6.15 euros; +9.6 per cent) and Gera in Thuringia (6.18 euros; +12.0 per cent) are only just above the six-euro mark.

Basis of calculation:
The rent calculations were based on properties advertised on immowelt.de in 120 selected German medium-sized cities. The values calculated using hedonic methods show the price per square metre for existing flats (75 square metres, three rooms, first floor, built in the 1990s) on 1 April 2026 and the change compared with 1 April 2022. The figures are net rents excluding service charges for new tenancies.