Germany ranking: Here, normal earners can still afford their own home

Status: 31/08/2023, 20:08 p.m.

By: Lucas Sauter Orengo

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If a landlord increases the rent after modernization, he must disclose third-party funds such as state subsidies for energy-efficient renovations to tenants. © Monika Skolimowska/dpa

For many, buying their own home in Germany is utopia. A study is now to show where this is currently still possible – and where it seems almost impossible.

Munich - Life has become expensive. Pandemic, war and a rapidly changing world have caused the inflation rate to skyrocket, which is noticeable in people's wallets: whether it's food, summer holidays or other everyday expenses – prices are rising. For many people, therefore, there is even less money left over at the end of the month to even think about buying an apartment or even a house. But a recent study by immowelt now shows that despite massively increased prices, there are still cities where buying an apartment seems possible for normal earners. Unsurprisingly, Munich comes off badly in this ranking.

Study shows where average earners in Germany can still afford to own their own home

107 independent cities were examined, in which the monthly median gross salaries were compared with the average prices per square metre. For the creation of the ranking, according to the explanation of immowelt, the quotient of monthly median gross salary and average price per square meter of an existing apartment (107 square meters, 75 rooms, 3st floor, built in the 1s) was calculated in each of the 1990 independent cities. And indeed, there are cities in Germany where average earners could afford their own apartment – measured by the standards of the ranking.

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Germany ranking: Here, normal earners can still afford their own home

"Despite the price rally of the past decade, there are numerous cities where salaries have risen faster than real estate prices," says immowelt Managing Director Felix Kusch. "Potential buyers should take a look at the smaller independent cities at the top of the affordability ranking. There, the dream of owning one's own four walls is still realistic even for normal earners." According to the study, Salzgitter in Lower Saxony takes first place – residential property there costs an average of 1,604 euros per square metre, and the average monthly gross salary is almost three times as high at 4,487 euros. The other top rankings are as follows:

Germany ranking: Munich ranks last in terms of housing purchase opportunities

The study shows a completely different picture at the lower end of the rankings. Hardly surprising for most, Munich occupies the last place. This is where self-employment is the most utopian for normal earners. In 28 of the 107 independent cities, the price per square metre even exceeds the average gross salary. In the Bavarian capital, the quotient between salary and purchase price is 0.6.

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The state capital Munich in front of an Alpine panorama. © Shotshop / IMAGO

In Hamburg (106th place) and Berlin (101st place), too, it is difficult to afford housing with a medium income. Both cities are in the upper midfield in terms of salary, but are among the most expensive patches in the study.