Germany: Why foreigners pay more for rent than locals

Foreigners in Germany pay an average of 9.5 percent more rent per square meter than the Germans. So says the latest analysis of the Federal Statistics Bureau. For persons without German citizenship, the average net rent in Germany (excluding heating and utility costs) is 7.75 euros per square metre, while for persons with German passports it is an average of 7.08 euros. But rents are even higher for all when the services are added because these prices are nett.

The first attempt at an explanation was immediately made by the Statistics Office: The reason lies in the fact that foreigners primarily rent smaller apartments. This may save in the total rent, but the price per square meter is usually lower for larger apartments.

Concrete figures: A quarter (25 percent) of foreigners in 2022 lived in apartments smaller than 100 square feet [60 sq m], while among Germans this figure was only about one in eight (12 percent), which means that German people are large enough to live in apartments larger than 60 square feet [60 sq m].

In general, foreign families live on an average of 85.7 square metres of living space, while German families live at 1009.6 square feet [109.6 sq m].

Place of residence does not explain changes

The key factor under analysis is not passport, but the financial situation: generally, the poorest people seek smaller apartments, which includes a proportional number of foreigners, which means poverty in foreigners on average is more widespread.

But the Office claims it has no reliable statistics that would clearly confirm the link between foreign poverty and rent prices. The necessary data on the housing market and the economic situation of households are collected through various surveys and cannot be united simply for the entire country.

According to the Federal Office, this phenomenon occurs regardless of the residence. Foreigners pay higher rents per square metre both in large cities, where demand is large, as well as in smaller municipalities.

While the rent gap in large cities of more than 100,000 inhabitants is 7.3 percent, in cities between 50,000 and 100,000 people, 6.6 percent. In even smaller cities (from 10,000 to 50,000 people) the lease is 9.3 percent, while in municipalities with fewer than 10,000, these differences are even higher and go up to 10.6 percent. /DW