After 20 years on top, Munich has lost its title as the most expensive city for German renters. A new study also shows that the suburbs are no longer a cheap alternative.
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Stuttgart has overtaken Munich as the most expensive German metropolis for renters, an analysis of German rental prices released Thursday showed.
An average 65-square-meter (700-square-foot) apartment in an average Stuttgart neighborhood rents for €10.41 ($11.50) per square meter per month in 2019, excluding utilities. In Munich, renters pay an average of €9.74 per square meter.
Rental prices in Stuttgart are 48% above the national average of €7.04 per square meter.
Germany from A to Z: Stuttgart
We are taking a tour through Germany and every week we'll introduce you to a new town, guided by the alphabet. This time S takes us to Stuttgart, the capital city of Baden-Württemberg.
Image: picture alliance/dpa/M. Murat
Cars, cars and more cars
Stuttgart is a top destination for car fanatics. Although subject to opinion, it is widely accepted that the first automobile was invented by Karl Benz in Stuttgart in 1886. Visitors can learn about the inception and development of the car in the Mercedes-Benz Museum, and the Porsche Museum takes guests on a journey through the history of the brand.
Image: picture-alliance/dpa
City of palaces
The kings of Württemberg once ruled in Stuttgart, and the many palaces in the area bear witness to this time. The New Palace is in the city center, and during summer the square is a popular hangout for locals and tourists alike. The building is now used by the state ministries of finance and education.
Image: picture-alliance/dpa/P. Schickert
Weissenhof Estate
The buildings of Stuttgart's Weissenhof Estate are a feat of architecture. They were designed by the famous architects Le Corbusier and Ludwig Mies van der Rohe in 1927 as an exhibition on modern living. Both buildings by Le Corbusier (pictured) were declared UNESCO World Heritage Sites in 2016, together with several of his other works in seven different countries.
Image: picture-alliance/dpa/R. Schmid
Take to the stage
Stuttgart's theaters have something for everyone. There are six large, private theaters, around 20 smaller establishments and the multiple award-winning Stuttgart State Theater with opera, ballet and drama productions.
Image: picture-alliance/dpa/P. Schickert
Museums and galleries
The city boasts 11 large museums, plus 30 smaller exhibition buildings and special collections. The Schweine Museum, for example, is about the art and cultural history of the pig. Among the classics is the Staatsgalerie with paintings and sculptures from the 14th to the 21st century. The architecture is a wonder in itself — a postmodern building combined with traditional building elements.
Image: picture-alliance/dpa/C. Schmidt
City life among the vineyards
Stuttgart lies in a valley surrounded by vineyards. The winemaking industry has more presence here than in any other big German city, and a number of hiking trails take visitors through the vineyards. The tradition dates back 1,000 years, and the wine-growing museum (Weinbaumuseum) provides information about viticultural and oenological history.
Image: picture-alliance/dpa/B. Weißbrod
Swabian cuisine
A glass of Swabian wine goes hand in hand with some hearty Swabian food. Maultaschen, for example, are pasta pockets filled with minced meat, spinach and parsley. Visitors can sample Swabian cuisine in one of Stuttgart's many restaurants or in a "Besenwirtschaft" — traditional Swabian wine taverns that operate without a license for a maximum of four months a year.
The ingredients for a traditional Swabian meal can be found in all their forms at Stuttgart Markthalle. Even the most discerning foodies will be in their element here, and top chefs also come here to buy their produce. It's worth a visit just to see the Art Nouveau architecture, which is now listed as a historical monument.
Image: picture-alliance/dpa/S. Kahnert
Cannstatter Wasen Festival
The people of Stuttgart certainly know how to eat and drink … and party! The Cannstatter Volksfest, which normally takes place twice a year in spring and fall, is a huge festival with tents, stalls and fairground rides. This year, both events were canceled due to the coronavirus restrictions.
Image: picture-alliance/dpa/C. Schmidt
Stuttgart's landmark
The best place to view this "Swabian paradise" is from the TV tower. It soars 217 meters (712 feet) above the houses and vineyards, and on a good day you can see the mountains of the Swabian Jura. Looking out from the tower at sunset, it's easy to understand why many people still see Stuttgart as paradise on Earth.
Image: picture-alliance/dpa/W. Kastl
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Places where rents are below the national average include the eastern cities of Erfurt, Potsdam, Dresden, the eastern side of Berlin and the northern city Schwerin. Rent in the western half of Berlin costs €7.32 per square meter, slightly above the national average.
This is according to data from a newly released "Mietspiegel" or "rent index," which reflects the average price of residential rental property in cities across Germany.
The study, carried out by German market research company F+B, analyzed the average cost of renting in 351 German cities with more than 20,000 inhabitants.
Prices soar in the suburbs
While Stuttgart now ranks as the most expensive German city for renters, for the second year in a row the prize for the highest rent in the country goes to a small suburb outside of Munich.
In the town of Karlsfeld, population 22,000, the same 65-square-meter apartment rents for €10.86 per square meter in 2019, 54% above the national average.
Germany has seen rental prices in small suburbs overtake rates in city centers. Four of the cities in the top 10 list are suburbs of Stuttgart; another four are suburbs of Munich.
"We see that the old rule that if you want to live cheaply, move to the suburbs, is no longer necessarily true," the study's authors explained.
What to know before renting an apartment in Germany
In Germany, renting is more common than in most other European countries, with 48 percent of residents living in rental accommodations. Here are some particularities about renting in Germany.
Image: picture-alliance/Wolfram Steinberg
Rental barracks
Berlin's endless rows of tenements were once horribly overcrowded, with large families often living in one- or two-room flats. But in recent years, these so-called Altbau, or old buildings, have enjoyed a rapid renaissance. These blocks in the Prenzlauer Berg district of Berlin were, until the early 1990s, often empty and in a state of severe disrepair. Now everyone wants to rent an Altbau.
Image: picture alliance/ZB
Plattenbau
In former East Germany, where nearly all accommodation was rented from the government, prefab concrete housing blocks known as Plattenbau rose up across the communist nation. Not only were they cheap, but they were often preferred to Altbau apartments because they offered all modern conveniences like new plumbing that didn't leak, reliable electricity and hot water.
Image: picture-alliance/dpa/A. Burgi
Balconies
According to the most recent statistics from Statista (2015), 48 percent of Germans rent and 52 percent are home-owners. Most renters live in apartments - and make the most of their balconies. Some barbeque or lounge, while others grow overflowing gardens that utilize every last inch of precious outdoor space. Balconies can be veritable ecosystems that become rather bleak in the winter months.
In some Germans cities, particularly Berlin, rental houses are made up of front and back buildings separated by an inner courtyard through which the life of these rental communities ebb and flow. They are unique communal spaces across which people view each other's lives, and where they interact as they park their bicycles or access their numerous garbage bins.
Image: picture-alliance/ZB/M. Krause
Names instead of numbers
Only the names of residents are used to identify the flats inside a building in Germany. These names on the intercom of a Hamburg apartment building typically have no corresponding flat number. That means you have to address letters to Germany clearly because the mail carrier only has the name to go by.
Image: picture-alliance/dpa/M. Scholz
Flat sharing
Known as WGs, or Wohngemeinschaften, shared apartments are popular in big cities where apartment prices are rising and availability is shrinking. People who share flats often also rent out the living area to bring prices down as much as possible. This is especially so in Berlin, a city full of artists, students and people on low budgets.
Image: picture-alliance/dpa/J. Kalaene
Paint when you leave
Painting the apartment before you leave is another German rental tradition. Leaving the walls shiny white for the next residents isn't such a bad thing - but it means you have to spend days preparing walls and climbing ladders before you move out. Not all rental contracts force tenants to paint the apartment - however they are obliged to leave it as they found it.
Image: picture alliance/Denkou Images
BYO kitchen
In some German cities, kitchens and appliances are not included in rental properties. That means the tenant has to purchase their own and have it installed at their expense. Alternatively, some people buy the previous tenant's kitchen at a discount if they aren't planning on taking it with them to their next living space.
Image: DW/S. Braun
Small bathrooms in old rental buildings
Among the quirks of Altbau apartments is that many didn't use to include facilities, which were sometimes shared communally. That means that you'll find bathrooms today that are wedged into the smallest - and oddest - spaces. Or, in some cases, they might be huge and replace an entire former room. This shower in a Berlin flat was built in the kitchen cupboard.
Image: DW/S. Braun
Not all rooms are bedrooms
When scanning apartment listings in Germany, you'll generally find the sizes given in square meters and the number of rooms. The latter includes not just bedrooms, but also living space. The kitchen and bathroom(s) are listed separately. Apartments are most expensive in Munich, Frankfurt and Stuttgart, where new tentants pay on average 16.55, 13.37 and 12.95 euros per square meter respectively.
Image: picture-alliance/dpa
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Climbing rent slows down
Munich held the title of Germany's most expensive city for renters for 20 years before it was unseated by Karlsfeld last year. This year the city has fallen to 6th place while Stuttgart now ranks 2nd overall and first among the large cities.
The study also reveals that rent prices are rising at a slower rate than in the past. Rents rose 1.8% on average since last year, down from a rate of 2.2% the year before. The authors of the study point to various reasons for the slowdown, including the possibility that rent prices had become prohibitively expensive.
Rent indexes in Germany influence the prices laid out in new rental contracts as well as landlord and government decisions to raise or lower rental rates.
However, actual rent paid can vary wildly within cities, meaning the average price reflected in the index may not be representative of the reality on the ground.