Buy or rent? This is how you save in your region!

Buy or rent? This is how you save in your region!

Mansfeld-Südharz, Deutschland - The real estate market in Germany moved a lot in 2024, according to the “Postbank Wohnatlas 2025” study by the Hamburg World Economic Institute (HWWI). While the purchase prices for residential properties have dropped by modest 0.7 % compared to the previous year, the net rents have increased by a whopping 5.1 %. This brings a breath of fresh air to the market, because the average income pollution for buyers has decreased slightly: it is now 18.3 % of the budget net income, which marks a decrease of 0.9 percentage points compared to the previous year. On the other hand, tenants had to raise a higher proportion of 14.1 % of their income for net rents, which also represents an increase (Postbank.

A closer look at the regions shows interesting differences. According to the study, around 23 % of German households live in very cheap purchase regions, where less than 15 % of the income for credit financing is needed. Conversely, there are 25 % in regions with high purchase prices that use at least 25 % of the income. This is a decline from 69 to 56 municipalities compared to the previous year.

where the prices rise and fall

But where is the purchase particularly worthwhile? The large metropolises and holiday areas are still very popular with regard to the costs. In the district of North Friesland, buyers even have to spend 53.4 % of their income for financing. A similar picture is also shown in Aurich (44.4 %), Miesbach (39.6 %) and Garmisch-Partenkirchen (38.3 %). Cities like Munich (43.6 %), Berlin (43.3 %), Hamburg (39.8 %) and Frankfurt am Main (38.3 %) are also among the most expensive regions, while the rule of thumb states that households should not spend more than 30 %of their income for living (Postbank).

The latest trends and developments

The current developments make the question arise: Is renting really more expensive than buying? While the purchase prices are on a slight downward trend, the rental prices determine a clear increase. This could lead to a rethink with many potential buyers. Buyers should not only keep an eye on the current prices, but also take into account the long -term portability of their financing and the necessary financial scope for unexpected expenses. This pays off particularly in challenging markets (BBSR.