Rents in Germany increased by 4% in the second quarter of 2026, with large variations between cities.

According to the latest report from the German Economic Institute (IW), rents in Germany have increased by 4% in the second quarter of 2026 compared to last year, while the prices of homes for sale remain almost unchanged. The largest rent increases were recorded in Cologne (7.9%), Hamburg (5.5%), and Leipzig (5.4%).

In major cities, rents for two-room apartments often exceed 1,300-1,500 euros per month. For example, in Munich, the average rent is about 1,500 euros/month, while in Leipzig it is 670 euros/month.

The main problem is not only the high level of rents but also the lack of offers, with the number of available apartments being 12% lower than in 2022. This has led to increased competition in the rental market.

In contrast, the supply of homes for sale has increased, but prices have risen by only 0.8%. Economists suggest that measures are needed to encourage tenant mobility, but these proposals are contested by tenant organizations that demand limits on rent increases.