Overview

• In the seven largest cities, advertised rents for new contracts average 4.48 euros per square meter more than existing leases, a 48% premium, with the gap highest in Berlin at about 70% and sizable in Munich (45%) and Hamburg (37%).
• Since 2013, offered rents have climbed roughly 75% in the big seven and 50% nationwide, while existing-contract rents rose about 19%, creating what researchers call two parallel rental markets.
• For low-income households, rent burdens hold near 35% on existing leases but approach 50% when taking a new tenancy in major cities, according to the analysis.
• The study warns that large differentials deter moves to better-suited homes, reducing residential mobility and limiting labor availability for urban employers.
• The authors recommend lower building and transaction costs, faster permitting, and targeted affordable housing, noting rent controls and transfers offer only limited relief; a recent Pestel-Institut study reached similar conclusions.