BERLIN (dpa-AFX) - Concerns over a struggling economy and personal income are causing fewer people in Germany to search for rental apartments. In the fourth quarter of 2025, demand dropped significantly more than is typical at the end of the year, according to a new study by the Immoscout24 portal.
"We are observing that it is particularly lower-income households who are searching less intensively for a new apartment," said Managing Director Gesa Crockford. "This can be attributed to steadily rising rents and the uncertain economic situation." In light of the poor economic climate, people’s income expectations have declined, dampening consumer sentiment. At the same time, the tendency to save is "incredibly high."
Specifically, interest in rental apartments in the eight major metropolitan areas, including Berlin, Munich, and Hamburg, fell by 16 percent in the fourth quarter compared to the third. In independent cities, Immoscout24 recorded a decline of 23 percent, in the suburbs of metropolitan areas by 17 percent, and in rural areas by 20 percent.
Labor Market and Lower Immigration Also Have an Impact
In previous years, demand also fell in the fourth quarter—but much less so, by only 3 to 13 percent. However, demand for rental apartments remains high and is still well above pre-COVID levels.
The declining demand has two causes, says Tobias Just, Professor of Real Estate Economics at the University of Regensburg. "On the one hand, the downturn in the labor market is causing lower-income households to act more cautiously, and job-related moves are happening less frequently. On the other hand, fewer immigrants mean the overall number of apartment seekers is dropping."
At the same time, according to Immoscout24, asking rents for existing apartments continued to rise nationwide in the fourth quarter: up one percent compared to the previous quarter and up 3.7 percent compared to the same period last year. The trend is similar for newly built apartments (up 0.5 percent and up 3.7 percent).
According to its own statements, Immoscout24 bases its housing barometer on 8.5 million listings on the portal over the past five years. Demand for rental apartments is measured by clicks on listings. Only asking rents are considered, not completed contracts. Given the tight rental market, apartment seekers generally have little room to negotiate./als/DP/mis
