German rents climb 51% in a decade, DGB demands six-year nationwide freeze

A decade of steep increases

Rents in Germany's 40 largest cities climbed by an average of 51 percent between the first quarter of 2016 and the first quarter of 2026, according to an analysis by the German Trade Union Federation (DGB) based on Empirica market data. The figures capture asking rents in new listings, not existing contracts. The DGB released the numbers to coincide with nationwide rent-freeze action days running from Friday to Sunday.

In the 40 largest German cities, rents have risen much more sharply than the incomes of many employees in recent years. More and more people have to spend an ever larger share of their wages on rent.

Where the pressure is greatest

Rostock recorded the strongest percentage jump, with asking rents surging 83 percent from €6.00 to €11.00 per square metre. Berlin followed at 76.9 percent (from €8.93 to €15.80), Lübeck at 71.3 percent (to €12.52), and Hamburg at 54.2 percent (to €16.18). Munich, already the country's most expensive city, rose 51.6 percent to €23.26 per square metre. Frankfurt saw the smallest increase among the top ten cities at 42.3 percent, though its average rent of €17.79 is second only to Munich.

In Baden-Württemberg, the five largest cities (Stuttgart, Mannheim, Karlsruhe, Freiburg, Heidelberg) collectively saw a 50 percent rise, with Mannheim up 53.7 percent and Heidelberg up 51 percent.

DGB's six-point demand

DGB vice-chair Stefan Körzell called for a legally mandated six-year rent freeze, a major expansion of social and public housing, a genuine non-profit housing sector, and tougher rules against rent gouging. He also criticised the black-red coalition government for planning to cut housing benefit (Wohngeld).

By doing so, it is once again taking the axe to the weakest, instead of finally holding those with large fortunes and inheritances more accountable.

Katja Karger, head of DGB Berlin-Brandenburg, attacked the government's plan to ban the socialization of housing companies at state level, arguing it would override Berlin's referendum on taking over large private landlords and offer no quick relief for tenants.

Political reactions and construction woes

Left Party leader Luigi Pantisano called the figures "dramatic" and said every third tenant household is overburdened by housing costs. He argued that relying on new construction alone cannot solve the problem and that rents in the existing stock must fall, pointing to the socialization of major landlords like Vonovia as a path to lower rents.

Meanwhile, housing cooperatives in Bavaria are struggling. Only 879 units were completed in 2025, down more than a third from the previous year, and the forecast for 2026 is just 449. Only eight new cooperatives have been founded in the state since 2021, compared with 36 between 2015 and 2021.