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Rent or buy? The housing cost question here in Bavaria!
Housing costs in Bavaria 2025: Renting is cheaper than buying, but high costs in cities like Munich. Facts and trends at a glance.
Rent or buy? The housing cost question here in Bavaria!
The dream of owning your own home is still a big topic for many people in Germany. But what are the actual options for renting and buying? In most regions of Germany it is more advantageous to rent an apartment than to buy one. This is shown by a current analysis of the Postbank residential atlas 2025, based on data from the Hamburg World Economic Institute (HWWI). In fact, only in around 10 percent of districts in Germany is purchasing considered the better choice.
Last year, the financial burden for buyers in 48 out of 400 districts was less than the rent for comparable apartments. What is particularly interesting is that this situation only applies to a single district in Bavaria. The perceived pressure from rising living costs is enormous, because on average buyers spend around 18 percent of their net income on interest and repayment for a 70 square meter apartment, while tenants only have to pay around 14 percent.
Current market developments
A closer look at developments shows that rental prices have risen by around 5 percent in the last few months, while purchase prices for condominiums have fallen by an average of 0.7 percent. The Postbank study shows that the income burden for renters has increased to 14.1 percent, while buyers have to pay an average of 18.3 percent of their income. However, compared to previous years, this is a positive development for buyers, who were burdened with 19.2 percent last year.
The differences between renting and buying are particularly significant in urban areas. The risk of bearing high financial burdens in large cities is clearly visible here. In Munich, for example, tenants have to spend around 25 percent of their income, while buyers have to spend almost 50 percent of their income on loans. This is a clear trend in high-priced regions such as Munich, Berlin and Frankfurt.
Regional differences
A look at the current price situation in Bavaria shows that the purchasing burden varies greatly from region to region. In Munich the highest purchasing burden is 43.6 percent, followed by the Miesbach district with 39.6 percent and Garmisch-Partenkirchen with 38.3 percent. The differences between purchase prices and rental prices are considerable here: in the Miesbach district, the difference between purchase and rental costs is 22 percentage points, which signals that buyers here have to dig particularly deep into their pockets.
In contrast, in some rural regions, such as the Mansfeld-Südharz district, there are buyers who only spend 7.8 percent of their income on real estate - a real bargain compared to rents. This shows that there are certainly attractive options outside of the big cities.
The decision between renting and buying should therefore be carefully considered. The Postbank researchers emphasize that, in addition to the current financial burden, long-term wealth creation through the purchase of home ownership and protection against future rising rental prices can also be crucial.
It will be exciting to see how the market will develop in the coming months. However, one thing is clear: If you have a good hand and keep a close eye on developments, you may be able to make a good deal - be it when buying or renting an apartment.