Cost of Living in German Metropolises: Breakdown of Expenses in Berlin, Frankfurt, and Munich
In a recent analysis by Euronews, the rent-to-salary ratio was calculated for three major German cities: Berlin, Frankfurt, and Munich. The calculation did not form part of the original report.
The average net monthly salary for full-time employees in Germany is approximately €2,244. In these three cities, rent prices vary significantly. Munich has the highest average rent for a one-bedroom apartment, ranging from €900 to €1,500, followed by Frankfurt with rents ranging from €800 to €1,300, and Berlin with rents ranging from €600 to €1,000 for a one-bedroom apartment.
These rent prices, when compared to the average net salary, result in approximate monthly rent costs as a percentage of net salary as follows: Berlin - around 29%, Frankfurt - around 41%, and Munich - approximately 52%. This indicates that Munich has the highest rent burden relative to average salaries among the three cities.
Globally, rents in Berlin, Frankfurt, and Munich are more affordable than cities like London, Zurich, or Geneva, but higher than in less expensive European cities like Athens. The cost of living (including rent) in Berlin, Frankfurt, and Munich is roughly around $2,200–$2,464 monthly USD, aligning with middle to higher European price levels.
When compared to other major European cities, house prices in the EU, on average, rose by approximately 48% between 2015 and 2023, according to Eurostat. Rent prices in most German cities have seen continual growth, although the rate varies significantly between different cities and neighborhoods.
Interestingly, Berlin had the lowest average monthly net salary of the three German cities, with $3,565 (€3,052). Frankfurt has the highest average monthly net salary of the three cities, ranking 10th out of 69 cities in a report by Deutsche Bank and numbeo. A working couple in Frankfurt has the highest disposable monthly income (€5,348), followed by a working couple in Munich or Berlin (€3,796 or €3,793 respectively).
In conclusion, while Germany's major cities offer relatively balanced living costs compared to other developed countries, Munich stands out as the city with the highest rent burden relative to average salaries among the three cities analysed. This data provides a comprehensive comparison of salary, housing cost, and rent-to-salary ratios for Berlin, Frankfurt, and Munich, reflecting the economic and housing market situation as of 2025.
In light of the given data, it's evident that Munich holds the highest rent burden relative to average salaries among the three cities, Berlin, Frankfurt, and Munich, when considering personal-finance and lifestyle. Moreover, when it comes to home-and-garden expenses, Munich also exhibits the highest monthly rent costs, which contributes to a higher business overhead for potential entrepreneurs living in the city.
