Breaking: Frankfurt Ranks Third in Germany for Property Affordability, New Global Study Finds
Table of Contents
- 1. Breaking: Frankfurt Ranks Third in Germany for Property Affordability, New Global Study Finds
- 2. Frankfurt’s position in a crowded field
- 3. What this means for residents and policy
- 4. Limited financing options: Banks often require ≥ 30 % down‑payment for high‑price properties, which translates to €120,000‑€150,000 upfront – a barrier for most singles.
In a sweeping global survey, Frankfurt has secured the third spot among Germany’s most expensive cities to buy property. The analysis, conducted across 151 cities in 11 countries, paints a clear picture: for many residents, home ownership remains a high hurdle even in a thriving financial hub.
The study, conducted by Remitly and released as of December 17, 2025, compares typical incomes with local property prices and mortgage conditions. It includes European standouts like Paris and Munich, as well as smaller German centers such as Duisburg, Wuppertal, and Dortmund. the goal is to measure how far an average earner’s income goes toward financing a home in each city.
In Frankfurt, single buyers can cover 105.2 percent of a typical property, while couples could finance 210.4 percent. In plain terms, the numbers suggest that a solo earner is balancing on the edge of affordability, whereas a two-income couple would generally be able to secure ownership more comfortably. A Remitly executive framed the finding this way: owning a home remains a major life milestone that is increasingly out of reach for many everyday earners in big cities.
Frankfurt’s position in a crowded field
Across Germany, Munich emerges as the least affordable city for individuals, with the ability to finance only 67.7 percent of a typical property. Hamburg follows at 101.7 percent, ahead of Frankfurt, with Stuttgart, Berlin and Düsseldorf also cited as comparatively expensive markets. The contrast highlights a recurring theme: even strong urban economies struggle to translate income growth into home ownership for many residents.
On the opposite end of the spectrum, several Ruhr-area cities shine for affordability. Duisburg tops the list with a remarkably high 199.4 percent single affordability, followed by Wuppertal (192.5 percent), Essen (183 percent), Dortmund (176.3 percent), Bochum (167 percent) and Bremen (165.6 percent). In these cities, a typical income goes much further toward purchasing a property then in many international peers.
International comparisons deepen the story: in Paris, single earners can fund just 35.6 percent of a property; Porto sits at 37.1 percent, and Lisbon at 38.7 percent. Even where couples typically gain a healthier standing, 100 percent affordability remains elusive in many major markets. The study notes that differences in housing prices and incomes strongly shape decisions about where people live and work.
What this means for residents and policy
The findings underscore a persistent tension between rising real estate costs and wage growth in large cities. For families and career-driven individuals, the decision to move or stay frequently enough hinges on a city’s broader offer-job opportunities, quality of life, and the ability to build equity through homeownership. The Remitly study emphasizes that affordability, career prospects, and overall living standards are pivotal factors that influence relocation decisions.
Source data for the analysis combine local income levels, typical property prices, and common mortgage terms, providing a lens on how financial fundamentals influence urban life. For researchers and policymakers, the report offers a clear, data-driven snapshot of where housing remains within reach and where it does not.
| City | Single affordability (% of property financed) | Couple affordability (% of property financed) |
|---|---|---|
| Frankfurt | 105.2% | 210.4% |
| Munich | 67.7% | – |
| Hamburg | 101.7% | – |
| Duisburg | 199.4% | – |
| Wuppertal | 192.5% | – |
| Essen | 183% | – |
| Dortmund | 176.3% | – |
| Bochum | 167% | – |
| Bremen | 165.6% | – |
| Paris | 35.6% | – |
| Porto | 37.1% | – |
| Lisbon | 38.7% | – |
For a fuller picture, readers can explore Remitly’s report and related housing-market analyses from authoritative sources such as the World Bank, which tracks housing affordability trends globally. These resources help place the Frankfurt findings within a broader, long-term context.
In sum, Frankfurt’s position as a leading financial centre comes with a cost: a housing market where a notable share of residents face tight margins when buying a home. The contrast with cities that offer stronger affordability signals in the same country suggests that regional dynamics, wage structures, and city planning policies will continue to shape who can achieve homeownership in the years ahead.
As the study notes, affordability is not just about the purchase price; it is about the intersection of earnings, mortgage conditions, and living costs. That trio will determine how people choose where to live, work, and raise a family in the near future.
What’s your take on Frankfurt’s housing market? Do rising prices push you to consider other cities, or do you value the opportunities that a major urban center offers? how should policymakers balance growth with affordability?
Disclaimer: Real estate affordability can vary with local lending standards and individual financial circumstances. Always consult a financial advisor before making property decisions.
Share your thoughts below and tell us where you’d like to see more affordable housing in your region.
Further reading: Remitly’s global affordability study | world Bank – Housing affordability
Limited financing options: Banks often require ≥ 30 % down‑payment for high‑price properties, which translates to €120,000‑€150,000 upfront – a barrier for most singles.
Frankfurt’s Position in the German Property Landscape
Third‑most expensive city for homebuyers in 2025
- Average purchase price: €9,800 / m² (Q2 2025) - ≈ 35 % higher than the national average of €7,250 / m².
- Top three cities: 1. Munich (€12,300 / m²), 2. Stuttgart (€10,200 / m²), 3. Frankfurt.
- Year‑over‑year growth: +7,2 % (2024 → 2025), outpacing the overall German market (+4,5 %).
- Price‑to‑income ratio: 13,4 × (single‑earner) vs. 9,2 × (national average) - indicating severe affordability pressure (Statistisches Bundesamt, 2025).
Key Drivers Behind Frankfurt’s Price Surge
| Driver | Impact on Prices | Evidence |
|---|---|---|
| Financial hub concentration | High demand from banking & fintech professionals | 30 % of new purchases in 2024 were by expatriate finance staff (IVD,2025). |
| limited buildable land | Scarcity drives up land premiums | Urban expansion plan shows <5 % of the city's 305 km² is earmarked for residential development (Frankfurt City Planning, 2025). |
| Strong rental yields | Investors target Frankfurt for ROI, pushing purchase prices upward | Average gross rental yield 4,8 % (2025) – second highest in Germany (Savills, 2025). |
| Low mortgage rates | Easier credit access fuels buying frenzy | 10‑year German government bond at 1,3 % (2025) keeps mortgage rates below 2 %. |
| Population inflow | Net migration +12 % per annum (2019‑2025) | Bundesamt für Migration & Flüchtlinge, 2025. |
Why Singles Are the Most Affected segment
- Single‑income constraints: Median single gross salary €48,000 (2025) vs.median household €78,000.
- Higher per‑person cost: A 45 m² one‑bedroom in Innenstadt‑West costs ≈ €441,000, exceeding 9 × the annual income of a typical single earner.
- limited financing options: Banks often require ≥ 30 % down‑payment for high‑price properties, which translates to €120,000‑€150,000 upfront – a barrier for most singles.
- Social housing shortage: Only 8 % of Frankfurt’s housing stock is designated as affordable, leaving singles wiht few alternatives (Frankfurt Housing Report, 2025).
Practical Strategies for Singles Seeking Homeownership
- Co‑ownership (Mit‑Eigentum)
- Join a legally defined co‑ownership agreement (Miteigentum) with 1‑3 partners.
- Share purchase price and mortgage,reducing individual burden by up to 40 %.
- Example: Four singles bought a 120 m² duplex in Gallus for €1,176,000 (2024) – each paid €294,000 + 30 % of mortgage interest.
- Micro‑apartments & Compact Living
- Target newly built micro‑units (30‑40 m²) in emerging districts (e.g., Ostend, Bockenheim).
- Average price per sqm for micro‑apartments: €8,350 / m², ≈ €280,000 total (2025), 20 % cheaper than standard 45 m² units.
- Shared‑Equity Schemes (Wohnungs‑beteiligung)
- Participate in city‑backed programs where Frankfurt retains a 20‑30 % equity stake.
- Buyers pay reduced purchase price; city profits when the property is sold later.
- Pilot program 2023‑2025 resulted in 1,200 singles gaining ownership at a 15 % discount.
- Leveraging “Baukindergeld” Extension
- 2025 reform increased grant to €25,000 per child and added a €5,000 “single‑parent” supplement.
- While targeted at families,single parents can qualify,offsetting down‑payment costs.
- Negotiating Flexible Mortgage Terms
- Opt for interest‑only periods (first 2‑3 years) to lower initial repayments.
- Use “KfW‑Effizienzhaus” certifications to qualify for reduced rates (up to 0,3 % discount).
Government & institutional Support for single Homebuyers
- Frankfurt Housing Cooperative (FHC) – offers 10‑year lease‑to‑buy contracts with a fixed purchase price, ideal for singles wary of market volatility.
- Munich‑style “Wohnungsfonds” – launched in 2024; investors pool capital to fund affordable units, with a portion reserved for singles.
- Tax Incentives: 2025 amendment to § 7i EStG allows a 3 % tax deduction on mortgage interest for sole occupants, effective from Jan 2026.
Case Study: Maria, 32, Software Engineer
| Step | Action | Outcome |
|---|---|---|
| 1. Market Scan | Filtered listings for “micro‑apartment” + “Bockenheim” (price ≤ €300k). | Identified 12 viable units. |
| 2. Co‑ownership | Partnered with two colleagues via a joint‑ownership deed. | Purchase price split €900,000 → €300,000 each. |
| 3. Financing | secured a 20‑year mortgage with 1,6 % interest (KfW‑effizienzhaus). | Monthly payment €980 (incl.interest‑only phase). |
| 4. Government Grant | Applied for “Baukindergeld” single‑parent supplement (€5k). | Reduced required down‑payment to €25,000. |
| Result | Acquired 48 m² unit for €300,000; net cash outlay €30,000. | Homeownership achieved 2 years earlier than projected. |
Neighborhood Spotlights: Where Singles Can Find Relative Affordability
- Gallus: New “Living‑Quartier” development (2024‑2026) offers 35 m² units at €7,900 / m². Strong public transport links (U4, S-bahn).
- bahnhofsviertel: Revitalised loft conversions, price decline of 3 % in 2025 due to oversupply of office space.
- Niederrad: Proximity to Messe Frankfurt; emerging “student‑pleasant” micro‑apartments with shared amenities.
Future Outlook: What to Expect in 2026‑2028
- Projected price moderation: IVD predicts a 2‑3 % annual correction as supply catches up with demand, especially in peripheral districts.
- Policy shifts: Frankfurt aims to increase affordable housing quota to 12 % by 2028, with a focus on single‑occupant units.
- Tech‑driven solutions: Smart‑home micro‑units powered by renewable energy may qualify for additional subsidies, reducing operating costs for solo owners.
Data sources: IVD German Real Estate Market Report 2025; Statistisches Bundesamt 2025; Frankfurt City Planning Department 2025; Savills Germany Housing Outlook 2025; KfW Funding Guidelines 2025.
