Munich

1. Munich is home to the world's largest beer garden, the Theresienwiese, which can accommodate up to 7,000 visitors, making it a great spot for soaking in local culture. 2. The city features an underground river, the Würm, which runs beneath the surface and has been part of Munich's history since the medieval era, contributing to its unique water management systems. 3. Munich has a tradition of "Schwaben" cuisine, which includes unique dishes such as "Maultaschen" (German dumplings) and "Käsespätzle" (cheese noodles), offering a different culinary experience beyond the well-known Bavarian pretzels and sausages.

About 77% of Munich’s residents rent their homes, while only around 23% own property. This high rental rate reflects both longstanding German housing traditions and the extreme cost of buying. As of mid-2025, the median purchase price for existing apartments is about 7,500 to 8,200 euros per square meter, reaching over 10,000 euros per square meter in central locations. New build prices average 13,400 euros per square meter. Median rental prices are 19.30 euros per square meter citywide, ranging between 14 and 18 euros per square meter in suburban districts and up to 25 euros per square meter in central areas. Publicly owned housing plays a stabilizing role in an otherwise highly competitive market, with city and municipal companies providing housing for those unable to access market-rate apartments. The share of public or social housing has continually declined but remains vital for low- and middle-income households. Recent figures indicate that publicly or institutionally owned properties account for about 15% of all residential units in the city. In Munich, "public housing" typically refers to municipally owned or subsidized rentals, while "social housing" is a narrower category, targeted by strict income criteria and subject to rent controls and tenant allocation rules. Therefore, not all public housing is social housing: social housing is more tightly regulated and specifically reserved for those with the greatest need. Rental demand and prices are expected to remain high due to a chronic housing deficit.

Munich’s housing crisis is among the most severe in Europe, defined by a stark shortage of rental apartments and record-low vacancy rates—estimated at only 0.1% to 0.2% in central districts. In 2024, only 6,500 new apartments were built, a 30% drop from the previous year, and far below the annual need of more than 10,000 new units. This persistent supply-demand gap has driven Munich’s average rents to become the highest in Germany, with median monthly rents for a one-bedroom apartment at about 1,650 euros and average rents of 19.30 euros per square meter citywide, greatly surpassing the national average. Asking rents for newly listed apartments reach around 21 to 23 euros per square meter—growth that outpaces wage increases for most residents. Rising construction and financing costs have further slowed new building activity. Meanwhile, the share of affordable, public, or social housing continues to decline, intensifying pressure on those with limited means. The crisis impacts wide sections of society: working- and lower-middle-class families, single-income households, young professionals, university students, and migrants all report acute difficulties finding affordable accommodation. Even middle earners increasingly face excessive rent burdens or are forced into overcrowded or less desirable housing. As a result, housing insecurity in Munich is not limited to marginalized groups, but has become a broad-based urban challenge affecting much of the population.

Munich’s city administration faces ongoing challenges in creating affordable and sustainable housing due to a persistent supply shortage, high costs, and low vacancy rates. Recent targets for the sector, aligned with federal and state goals, focus on enabling the construction of at least 11,300 new homes annually—however, only around 6,500 were built in 2024, far below demand. To address these issues, Munich pursues several key initiatives. The city expands municipal housing through its companies (notably GEWOFAG and GWG), aiming to stabilize rents and widen access for low- to middle-income groups. Recently, the right of first refusal for municipal purchase of properties was strengthened to help preserve affordable stock. Social housing quotas in new development projects were raised, and incentives for developers to build subsidized units have increased, with requirements that a higher percentage of new builds be let at below-market rates for up to 30 years. Sustainability is addressed by mandating that all new construction meets the Energy Efficient Home 55 (EH55) standard from 2025. The administration supports retrofitting existing stock with better insulation, solar panels, and heat pumps, partially funded through municipal and state programs. Rent control measures—including a cap on allowable increases and additional restrictions on index-linked and furnished lettings—are being extended and tightened to keep existing flats affordable. Despite these efforts, bureaucratic hurdles, rising construction costs, and land scarcity continue to hinder the rapid expansion of affordable and sustainable housing in Munich.

Housing cooperatives have a longstanding but relatively small presence in Munich’s housing market. Their share of all housing units remains limited, estimated at around 5–7% of the city’s total housing stock, making them less prominent compared to municipal and social housing. However, recent years have seen renewed political and public interest due to persistent affordability issues and a chronic supply shortage. The city administration promotes cooperative housing as a way to provide stable, community-oriented, and self-managed living environments outside the classical profit-driven rental sector. Munich actively encourages cooperative developments through programs such as dedicating city-owned land for cooperatives on long-term leasehold terms, integrating cooperatives into new neighborhood masterplans, and reserving quotas for cooperatives in major urban development areas. Priority is given to cooperatives in land allocation procedures, and there are advisory services to simplify application and approval processes. Some new projects include mixed cooperative and subsidized units to foster social mix. The city also works to strengthen the financial viability of cooperatives by supporting them in meeting high construction and sustainability standards. Recent sector dynamics in Munich are shaped by significant challenges: cooperatives face high land and construction costs, regulatory hurdles, and competition from larger private and institutional landlords. Despite these obstacles, membership demand for cooperatives continues to rise, but expansion is limited by available land and capital. While growth is gradual, cooperative housing remains a targeted and expanding sector within Munich’s broader strategy for more affordable and socially sustainable housing.