Germany’s housing market adjusts to permanent scarcity
Germany's housing shortage has now definitively crossed an important line. What was once treated as a cyclical undersupply
North Rhine-Westphalia, Bremen and Saxony have all extended rent control regulations following the federal government's decision to prolong the Mietpreisbremse framework until 2029.
North Rhine-Westphalia expanded coverage from 18 to 57 municipalities until end-2029, including Dortmund as the first Ruhr area city. Most affected municipalities are in the Düsseldorf, Cologne and Bonn metropolitan areas. New tenancy agreements may not exceed local comparative rent by more than 10%. Maximum rent increases within three years have been reduced from 20% to 15%.
Bremen extended rent control until end-2029 for Bremen city, citing high demand and low vacancy rates. Bremerhaven remains exempt.
Saxony extended rent control in Dresden and Leipzig until mid-2027, with rent increases capped at 15% over three years.
Landlord associations criticised the extensions. Haus & Grund Rheinland Westfalen argued regulations rely on outdated data and use inflated online portal prices rather than actual rents. The association pointed to NRW's 6.5% land transfer tax as constraining new construction and undermining affordability.
New buildings and comprehensively renovated properties remain exempt across all three states.
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