Most tenants in Baden-Württemberg are inclined towards property ownership, with a significant majority (two-thirds) expressing this desire.

Most tenants in Baden-Württemberg are inclined towards property ownership, with a significant majority (two-thirds) expressing this desire.

In a study conducted by communication scientist Frank Brettschneider from the University of Hohenheim, it was revealed that homeowners in Stuttgart are significantly more satisfied with their living situation compared to tenants. The study, commissioned by the Arbeitsgemeinschaft Baden-Württembergischer Bausparkassen (Arge), found that 69% of homeowners expressed very high satisfaction, compared to 49% of tenants.

When asked about happiness, the difference was even more pronounced, with 61% of homeowners describing themselves as very happy, while only 45% of tenants did. However, the study did not provide insights into the potential reasons for this disparity.

The basic desire for homeownership remains high among the population, with almost two-thirds of tenants having frequently or occasionally thought about it. This desire is fueled by a variety of factors, including the city's strong local economy, moderately priced rental market, and overall cost of living dynamics.

Stuttgart's economy benefits from major employers like Daimler and Bosch, making it an attractive labor market and supporting demand for housing. A strong local economy and labor market improve residents’ buying power, impacting homeownership desire and feasibility.

Rental prices in Stuttgart have increased only slightly in 2025, by about 0.2% quarter-on-quarter, and average net rents stand at roughly €15.99 per square meter. This reflects a slowing of rent growth compared to previous years, with rental price increases below the inflation rate. Despite this slower growth, rental demand remains robust but not as intense as during peak migration years.

However, new housing construction remains subdued, contributing to a continued low level of new housing availability in Stuttgart. This limited supply supports sustained rental growth pressure in the longer term. The German government's "housing construction turbo" initiative aims to boost housing supply, but its impact on Stuttgart is yet to be seen.

Despite the challenges, the satisfaction with living situation has been consistently high for over ten years. Stefan Siebert, Arge chairman and CEO of Landesbausparkasse Süd, stated that fewer and fewer tenant households can afford to buy or build their own apartment or house.

Normal earners cannot hope for effective financial support through state subsidies due to the costs of meeting energy efficiency requirements exceeding the present value of the subsidy. As a result, the number of first-time homeowners is now below 20 percent. The study did not provide information about potential reasons for the decrease in first-time homeowners.

Reiner Braun of Empirica, a research institute that examined the housing market and savings for building in Baden-Württemberg on behalf of Arge, made this statement. For further information, Jürgen Schmidt can be contacted at 0711 66601-147 or j.schmidt@our website.

It's important to note that the study was focused on the living situation in Stuttgart and did not compare the satisfaction levels of homeowners and tenants in other regions or cities. Christian Schneider (CDU), head of the Landesbauministerium in Böblingen, admitted that he could not afford an immovable property despite his salary in the district, highlighting the affordability challenges faced by many residents.

In summary, Stuttgart’s homeownership influences involve a balance between moderate rental growth, limited new housing supply, its strong employment base, and a cost environment that is notable but not the highest in Germany. These factors collectively shape the affordability and attractiveness of homeownership in the city.

1. Despite the modest increase in rental prices, the costs of meeting energy efficiency requirements exceed the present value of state subsidies, making it difficult for normal earners to become first-time homeowners.
2. The limited supply of new housing in Stuttgart, combined with its strong local economy and moderately priced rental market, fuels the desire for homeownership among tenants.
3. Personal finance considerations, such as meeting energy efficiency requirements and obtaining financial support, play a significant role in the decision to buy or rent, as the number of first-time homeowners is now below 20%.

Read also: