Foreign nationals living in Germany pay nearly 10 percent more in housing costs compared to German citizens, according to data released by the Federal Statistical Office on Wednesday (May 21). 

The figures, based on a 2022 census, reveal that people without German citizenship paid an average of 7.75 euros per square meter in net cold rent (Kaltmiete) -- 9.5 percent more than the average of 7.08 euros paid by German citizens. 

The "net cold rent" reflects the base rent and generally excludes utilities such as heating or electricity. Net cold rent is calculated across all rental contracts, including long-standing ones. According to the Federal Statistical Office, because net cold rent is standardized per square meter, it serves as a reliable metric for comparing rents across apartments of different sizes. 

Related data from the 2022 Census shows that the housing market in Germany exhibits significant regional disparities in rental costs. The average net cold rent across the country was 7.28 euros per square meter. However, in major cities, this average was notably higher. For instance, among the major cities, Munich had the highest average net cold rent at 12.89 euros per square meter, followed by Frankfurt (10.58 euros), Stuttgart (10.39 euros), and Heidelberg (10.02 euros). Berlin's average was 7.67 euros per square meter, placing it in the mid-range among major cities. 

Smaller Homes, Higher Costs 

One key factor influencing this rental disparity is apartment size. Foreign nationals are more likely to live in smaller homes, which tend to have a higher cost per square meter. In 2022, 25 percent of foreign nationals lived in apartments smaller than 60 square meters, compared to just 12 percent of Germans. For these smaller units, the average rent was €8.01, which is 15.6 percent higher than rents for larger apartments (60 m² or more), which averaged €6.93. On average, foreigners lived in apartments measuring 85.7 square meters, while Germans lived in larger homes averaging 109.6 square meters. 

The data also highlights a sharp divide in homeownership. While 54 percent of Germans lived in their own homes in 2022, only 22 percent of foreign nationals were homeowners, with the vast majority renting instead. 

Additionally, 22 percent of foreign nationals had moved into their current home within the past year, compared to only 7 percent of Germans. In terms of tenancy duration, over half of German citizens or about 51 percent had been living in the same home for a decade or more, versus just 20 percent of foreign nationals.  

Longer stay does not equal lower rent 

While it might be assumed that Germans pay less rent simply because they tend to stay in their homes longer, the data suggests otherwise. Even when accounting for how long tenants have lived at their current address, foreign nationals consistently pay more per square meter.  

Those who had lived at their address for 20 years or more paid 9.1 percent more than Germans with the same length of residency. The rent gap remained significant among other long-term residents as well: foreigners who had lived in their homes for 15 to 20 years paid 5.9 percent more, and those with 10 to 15 years of residence paid 7 percent more.  

Even among new tenants defined as those who had moved in less than a year ago, foreign nationals still paid 3.5 percent more than their German counterparts. The data also shows that 22 percent of foreign nationals had moved into their current residence within the past year, compared to just 7 percent of Germans, while a little more than half of German citizens had been living in the same home for over a decade, a stability achieved by only 20 percent of foreign nationals. 

Discrimination in the housing market 

The housing crisis deepens in Germany’s big cities such as Berlin, Munich, and Frankfurt. Berlin, once known as a haven for affordable living, has experienced a dramatic surge in rental prices. 

According to a study commissioned by the Berlin Tenants’ Association, about a third of Berlin households cannot afford market-rate apartments. Moreover, over half of all renting households in the city qualify for government assistance due to low incomes. 

Discrimination in Germany’s housing market remains a widespread and deeply entrenched issue, particularly for individuals with a migrant background, according to extensive research conducted by the Federal Anti-Discrimination Agency (Antidiskriminierungsstelle des Bundes).  

According to a survey, around 35 percent of people with a migrant background reported experiencing racial discrimination while searching for an apartment. About 83 percent of the respondents across demographics reportedly believed that racism plays a frequent role in rental decisions, making the housing sector one of the most common sectors for discrimination.  

The reported forms of the rental bias vary and include being denied apartment viewings to facing inflated rent demands, or enduring offensive comments. In some cases, landlords reportedly reject applicants outright based solely on foreign-sounding names.  

However, incidents of discrimination often go unreported, due in part to challenges in proving bias and a general lack of awareness about legal protections under the General Equal Treatment Act (AGG). Although the AGG bans discrimination on the basis of race or ethnicity, loopholes exist -- for example, landlords who live in the same dwelling as their tenants may legally select roommates based on personal preference.  

In response to the findings, the Anti-Discrimination Agency called for upholding the agency also promotes its "Fair mieten – fair wohnen" (Fair Renting – Fair Living) guidelines to help renters recognize and challenge discrimination in the housing market. 

Where to go for advice and support 

If you're looking for advice or support in finding housing, here are some organizations that can help 

1. Federal Anti-Discrimination Agency (Antidiskriminierungsstelle des Bundes) 

• Role: Provides confidential advice, helps assess whether discrimination has occurred under the General Equal Treatment Act (AGG), and refers people to legal aid and local support services 
• Services: Free consultations (by phone, email or web form), educational materials, support with documentation
• A related office, the Berlin Office Against Discrimination in the Housing Market supports people who have experienced discrimination while looking for housing

2. German Tenants’ Association (Mieterverein / Deutscher Mieterbund (DMB) 

• Role: Offers legal advice and advocacy to tenants, including those experiencing discrimination 
• Membership-based: Requires a small annual fee, but includes access to legal consultations, sample letters, and representation in tenant disputes 

3. Integration Councils / Offices for Integration & Migration 

• Often part of municipal administrations. 
• Provide support to people with a migration background, including advice on housing and discrimination. 
• Look for them on your city’s website by searching for “Integrationsbeauftragte” or “Migrationsberatung” 

4. Migration Advice for Adult Immigrants (Migrationsberatung für Erwachsene (MBE) 

• Charity run organizations that offer multilingual advice on housing, discrimination, and legal rights