Where home ownership becomes a bargain: 130 regions in focus!

Where home ownership becomes a bargain: 130 regions in focus!

The current analysis by the Hamburg Institute of World Economics (HWWI) on behalf of Postbank shows that purchase and rental prices vary greatly in Germany. The study, which covers 400 rural districts and independent cities, sheds light on the financial burden on buyers and tenants in 2024.

An interesting finding: In 130 regions, less than 15% of household income is enough to cover the loan payments for a 70 square meter apartment. On average across Germany, the income burden for buyers fell to 18.3% (2023: 19.2%). This means that buyers will generally have to spend less of their income on home loans than last year. On the other hand, the burden on tenants increased slightly - from 13.9% to 14.1% of household income.

Anyone who can get a bargain

What is particularly striking is that buying a property is cheaper than renting in 48 regions. These regions, where buyers need less income for financing, are mostly located in eastern Germany. A good example is the Mansfeld-Südharz district, where buyers only have to pay 7.8% of their income for the purchase, while tenants pay 11.0% - a real advantage for those interested in buying.

The data also shows that 23% of German households live in regions where less than 15% of their income is needed to buy an apartment. On the other hand, 25% live in 56 regions with high purchase prices, where at least 25% of their income has to be spent on loan financing. This 25% limit is based on the rule of thumb that no more than 30% of income should be budgeted for housing costs.

Rents rise, purchase prices fall

An opposite trend is emerging on the rental market. How miamakler.de reported that rental prices are rising, especially in large cities like Berlin. In 2022, rental prices for new buildings rose by around 12%, while rents for existing apartments in Berlin rose by a full 29%. The media quoted rent for furnished apartments in the capital is currently 32.00 euros per square meter, a real price shock for many tenants.

The high demand for rental apartments in urban centers is leading to price increases, while purchase prices are declining in many places. This dynamic development of the rental market has contributed to the fact that some buyers are also able to resort to the rental sector if they can no longer afford to buy a property in their own district.

Overall, the study shows a clear trend towards an increasing gap between buyer and renter burdens, which is further exacerbated by regional differences. The market remains exciting and it will be interesting to see how the situation develops in the future.

In conclusion, it can be summarized that both those interested in renting and buying are well advised to pay attention to regional differences and trends. Even though prices are rising in some areas, there are still good opportunities in many regions that you should take advantage of with a good hand.

For further details see also VersicherungsJournal and Baulinks.