Munich has long been known as one of Germany’s most expensive housing markets, and the latest figures confirm just how dramatic the situation has become.
Economists generally recommend that tenants spend no more than 30 percent of their net income on housing. Yet in Munich, reality is far different.
Students, families and professionals alike are struggling. Shared flats (WGs) already cost around €790 per room, while a single studio apartment can reach €1,200 per month – well above the affordability threshold.
Strong differences between districts
According to the current Munich rent index, the citywide average rent is roughly €25 per square meter. But prices vary significantly by neighborhood.
In outer districts such as Fürstenried, a newly built one-bedroom flat of around 40 square meters may still be found for just under €1,000 per month. By contrast, a similar apartment in Haidhausen can cost €1,250.
Larger homes remain out of reach for many families. In Hasenbergl, a four-room flat with 90 square meters is offered at around €2,000 monthly rent – considered relatively affordable by Munich standards.
Furnished flats: a legal loophole
The situation becomes even more extreme in the case of furnished apartments rented on a temporary basis. Because the so-called “Mietpreisbremse” (rent cap) does not apply in such cases, landlords can set almost any price.
One current listing describes a “cozy retreat” near the English Garden: 66 square meters for €4,750 per month.
This practice highlights how difficult it has become to find long-term, reasonably priced housing in the Bavarian capital.
Social impact of rising rents
The lack of affordable housing affects far more than students. Low-income earners, young families and even middle-class professionals are being priced out of central neighborhoods.
Experts warn that the widening gap between income and rent levels risks fueling social inequality in one of Germany’s wealthiest cities.
