Rent or buy? Housing cost check shows Bavaria's housing market!

Rent or buy? Housing cost check shows Bavaria's housing market!

If you are looking for a suitable apartment in Germany, you should keep the different characteristics of renting and buying in mind. A current study of the BR shows that in most regions it is cheaper to rent an apartment than to buy. Only in about ten percent of districts is purchasing a property more advantageous in terms of income.

According to the Postbank Housing Atlas 2025, which was created by the Hamburg World Economic Institute (HWWI), the burden for buyers in 48 of 400 German districts last year was actually below the rent burden for a comparable apartment. In Bavaria, however, this only applies to a single district. Nationwide, buyers spend around 18% of their net income on interest and repayment of a 70 square meter apartment, while renters have to pay around 14%.

Price development: rents rise, purchase prices fall

Particularly striking is the development of prices for condominiums, which fell by an average of 0.7% in 2024, while net rents rose by 5.1% Experts reported. This development has resulted in the income burden for renters falling to 14.1% and for buyers to 18.3%. These are significant changes compared to the previous year: tenants paid 13.9% and buyers 19.2% of their income in 2023.

However, in large cities the situation is somewhat different. Munich, for example, has the highest costs: Tenants here pay an average of a quarter of their income, while buyers have to pay almost half of their net income - with a purchase financing rate of up to 43.6% in Munich, followed by a high figure in the Miesbach district of 39.6% and Garmisch-Partenkirchen with 38.3%.

Differences between rural and urban regions

A look at the numbers also shows exciting differences between rural and urban areas. While in rural regions such as the Tirschenreuth district there is a purchase burden of only 11%, some high-priced rental regions have 17.5% or more for rent. In eastern Germany, in many regions it is even cheaper to buy than to rent, for example in the Mansfeld-Südharz district, where buyers only have to spend 7.8% of their income on the purchase - and therefore 3.1% less than renters.

The Postbank study makes it clear that around 23% of German households live in regions where they have to pay less than 15% of their income for a condominium. Nevertheless, 56 regions have been identified where buyers need at least 25% of their income for loan payments.

In summary, it shows Postbank residential atlas that many factors have to play into the decision for or against renting or buying a property. From additional costs to the energy condition of the property to individual life plans and income levels - a good sense of proportion is required to make a good deal!