Apartment Rents Are Rising Faster Than House Rents in Germany

Key Takeaways

• In 2021, apartments and houses were nearly equal in price per square metre, at €10.31 and €10.25 respectively.
• By Q1 2026, the average asking rent was €12.78 per m² for apartments and €11.69 per m² for houses.
• Since Q1 2021, apartment rents have increased by 24%, while house rents have risen by 14%. By 2026, apartments had grown to €1.09 more per m² than houses.
• Stronger urban demand and slower apartment construction have contributed to the widening rent gap between apartments and houses.
• Houses are more common in suburban and rural areas, where land is more available. This keeps rents per square metre lower.
• Houses remain cheaper per square metre, but their larger size often results in higher total monthly rent.

Apartment vs House Rent in Germany

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Rental prices for apartments and houses have both become more expensive since 2021. But the growth rate differs.

Apartment Rents in Germany Are Rising ->

Renting in Germany ->

In 2021, the two categories were almost equal in price per square metre. Apartments have seen sustained and stronger rental price increases. House rental prices have risen more moderately. By 2026, apartment rentals cost around €1.09 more per m² than houses.

Although house rental prices remain cheaper per square metre, they are typically larger. As a result, the total monthly rent for a house is often higher in absolute terms.

At 2026 rental price levels:

• A 70 m² apartment would cost around €895 per month.
• A 120 m² house would cost around €1,403 per month.

Apartments remain more expensive per square metre. At Q1 2026 prices, renting a 100 m² apartment would cost about €1,278 per month, compared with €1,169 for a house of the same size.

The rental price gap per square metre has therefore widened over time. 

Apartment rents have increased more quickly than house rents for several structural reasons:

• Location: Most apartments are located in cities, where demand is strongest. Urban areas continue to attract students, professionals, and smaller households.
• Supply constraints: In many cities, apartment construction has not kept pace with demand, putting upward pressure on prices.
• Land availability: Houses are more common in suburban and rural areas, where land is more available and demand is less concentrated. This helps keep rental prices per square metre lower.

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Asking rental rate per federal state ->

Since 2021, rents have increased every year for both apartments and houses. However, apartment rents have risen faster, gradually widening the price gap between the two.