"The Lefty Faction's Impact on Local Rental Rates"
In Region 10 of Germany, which includes Stuttgart and its surrounding municipalities, rent prices have been on a steady rise, outpacing the national average and causing concerns about affordable housing. Between Q2 2022 and Q2 2025, asking rents in the Stuttgart surrounding area rose by approximately 14.0% on average, with Stuttgart city itself experiencing an even higher increase of 18.2%.
The median rent in the Stuttgart surrounding area averaged €13.02 per square meter, while Stuttgart's city median rent was significantly higher at €17.18 per square meter. This places Region 10 among the priciest regions in Germany, with cities like Munich and Frankfurt also showing high rent levels, but Stuttgart’s suburban area stands out for strong recent growth.
Across Germany, rents have risen by about 18.3% over the last three years. Notable rent spikes have been observed in major cities like Munich (€20/m²), Frankfurt, and Berlin (€14.90/m²), but substantial increases have also been seen in smaller and mid-sized cities.
This rising rent trend, combined with limited new construction activity and strong demand, creates supply constraints, reducing the availability of affordable housing. Lower-income groups find it increasingly difficult to secure housing near economically strong regions like Stuttgart, which offer good employment but have limited new housing supply.
The gap between market rents and existing tenancy rents is growing, especially in cities like Berlin. A similar situation is likely in the Stuttgart region given its strong rent growth and constrained supply. The German government’s plans to cut housing support amid rapidly increasing rents raise concerns, as affordable housing becomes scarcer. Welfare support levels have not kept pace with the extreme rises in asking rents in hotspots, exacerbating housing affordability issues for vulnerable populations.
In Pfaffenhofen, the net cold rent increased from an average of 11.17 to 12.24 euros per square meter from 2023 to 2024, representing a 9.5 percent increase. However, the number of social housing units promised by Minister President Söder is significantly lower than the promised 10,000, with only 267 units currently available.
Sarah Vollath, a Member of the Bundestag, has expressed shock over the rising rent prices and demands immediate action. She calls for the introduction of a rent cap for Region 10, real social housing construction, and consistent protection for everyone who wants to live with dignity. Vollath also demands stricter regulations against speculative vacancy and the introduction of a purpose ban regulation for the region.
In Neuburg-Schrobenhausen and Eichstätt, the net cold rent is 11 euros per square meter each. The Federal Ministry of Housing has confirmed the rent prices in Pfaffenhofen, Neuburg-Schrobenhausen, and Eichstätt.
Vollath's demands include a rent cap for Region 10, real social housing construction, and consistent protection for everyone who wants to live with dignity. The situation in Region 10 underscores the need for urgent action to address housing affordability issues and ensure that everyone has access to affordable housing.
[1] Statista [2] Deutsche Welle [5] The Local
- The rising rent prices in Region 10, particularly in Stuttgart and its surrounding municipalities, have sparked concerns about investment in real-estate, as the prices outpace the national average and threaten the affordability of housing for lower-income groups.
- The German government's policy-and-legislation regarding housing support and rent controls could significantly impact investing in the real-estate market, especially in regions like Region 10, where rent growth has been strong and supply is constrained.
- The general news surrounding the housing crisis in Germany, including the rapid rise in rents, the limited new construction activity, and the calls for a rent cap and increased social housing, are crucial factors for those interested in investing in the region's real-estate market.
