Mortgage interest rates have skyrocketed and construction is expensive - many people can no longer afford to own their own homes. According to a new analysis, this also affects rents.
Frankfurt/Main (dpa/mv) - The increase in residential rents in Germany has accelerated after a phase of relatively moderate growth. According to data from the German Economic Institute (IW), asking rents rose sharply on average by 5.8 percent in the third quarter compared to the same quarter of the previous year. That was more than the average of the past three years with plus 4.5 percent. In Mecklenburg-Western Pomerania, the value was 10.3 percent compared to the same quarter of the previous year, which is the strongest increase of all federal states. The average increase in Mecklenburg-Western Pomerania over the past three years was 4.7 percent. In all federal states, growth was therefore above the medium-term trend.
"It shows that the momentum is increasing," said IW real estate expert Michael Voigtländer. People were increasingly looking for rental accommodation, while some landlords were charging higher rents, apparently because of high inflation. In addition, there are catch-up effects in rural regions that still offer comparatively cheap housing.
Higher lending rates, high construction prices and record inflation are making home ownership less affordable. Interest rates on ten-year real estate loans have more than tripled since the beginning of the year. Many people are therefore switching to the rental market. The shifting demand will increase the upward pressure on rents there, according to a recent study by Landesbank Helaba.
Recently, DZ Bank and the Association of German Pfandbrief Banks (vdp) have observed that rents under new contracts have risen more sharply with growth of around five percent over the year. The reason for the "noticeably increasing rents" is not only the shift in demand but also the increasing immigration with many refugees from Ukraine, according to DZ Bank. A high demand for affordable housing meets falling vacancies in the cities.
