10.09.2026 • 27/2026
EREI-Update: Rents in Europe’s cities are 23% higher on average than in rural areas
The European Commission currently prepares the Affordable Housing Act to tackle widespread concerns about tight housing markets, for example voiced by the German Tenants' Federation (DMB) which blames rising rental cost as one main driver of a social crisis in Germany. The latest European Real Estate Index (EREI) by the Halle Institute for Economic Research (IWH) shows that rental prices in Germany rose indeed three times compared to the European average in August. Moreover, the rental premium in metropolitan areas vis-à-vis the average in non-metropolitan areas in eleven EU member states amounts to 23%.
Michael Koetter
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