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New Index Maps Germany’s Living‑Cost Divide, With Munich Priciest by 24%

Rents account for most of the gap, prompting researchers to urge faster homebuilding to restore affordability.

Overview

  • In the seven largest metros—Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart—living costs in 2024 averaged about 11% above the national level.
  • Housing drives the difference most strongly, with average rents in those metros nearly 50% higher than the federal benchmark.
  • Many rural and eastern districts, including areas such as Vogtland and Görlitz, come in roughly 10% below the national average.
  • The city–country gap has barely shifted through recent inflation, as price increases hit regions broadly in similar ways.
  • The IW/BBSR index draws on publicly available online prices from retailers and comparison portals, including Rewe and Verivox.