Rental Housing Market in Nuremberg and Surrounding Areas in 2024

Nuremberg, the second-largest city in Bavaria, remains one of Germany’s key economic, cultural, and educational hubs. In 2024, the rental housing market in the city and its suburbs is characterized by rapid development driven by demographic shifts, economic factors, and government policies. Let’s explore the key features and trends shaping this real estate segment.
1. Current State of the Rental Market
Demand for rental housing in Nuremberg remains consistently high due to:
• Population growth. The city continues to attract migrants, students, and professionals from abroad.
• Limited supply. A lack of new properties in the city center pushes renters to seek housing on the outskirts and in suburban areas.
• Economic activity. Nuremberg is developing as a hub for technology, industry, and startups, driving demand for housing.
Average rental costs continue to rise, especially in sought-after areas such as Altstadt (Old Town), Gübitzenhof, and Erlangen.
2. Price Dynamics
Although rental price growth has slowed compared to previous years, it remains significant. Key factors include:
• Challenges in purchasing property. Higher mortgage rates make homeownership less accessible, increasing interest in rentals.
• Limited availability. The city center remains the most expensive and desirable location.
• Modern housing standards. Energy-efficient and renovated properties command higher rents.
The average rent for a 70-square-meter apartment in Nuremberg’s center is between €12 and €15 per square meter, while in suburban areas, it’s approximately €9 to €11 per square meter.
3. Supply and Demand
Nuremberg’s rental market is characterized by a significant imbalance between supply and demand. Key aspects include:
• Active student market. The presence of major universities, such as the University of Erlangen-Nuremberg, attracts thousands of students.
• Labor migration. The city is home to a growing number of foreign workers, including highly skilled professionals.
• Young professionals. Nuremberg’s career opportunities make it appealing for young people.
At the same time, housing supply remains limited due to a shortage of land for construction and low turnover in long-term rental properties.
4. Housing in Suburban Areas
Suburbs like Fürth, Erlangen, and Schwabach are becoming increasingly popular among renters. Reasons for their appeal include:
• Affordable prices. Housing here is cheaper than in Nuremberg’s central districts.
• Transport accessibility. Well-developed infrastructure allows easy commuting to the city center.
• Quality of life. Green spaces and a peaceful atmosphere make suburbs attractive for families.
Rental prices in the suburbs are approximately 20-30% lower than in central Nuremberg, making them an appealing choice for budget-conscious renters.
5. Popularity of Eco-Friendly Housing
Energy-efficient housing is becoming the norm. Many renters prioritize properties with:
• Solar panels.
• Modern heating systems.
• Improved thermal insulation.
Such properties are not only environmentally friendly but also help reduce utility costs, justifying higher rental rates.
6. Digitization of the Rental Process
Technology is rapidly transforming the rental housing market in Nuremberg. Key innovations include:
• Online platforms. Searching for housing is more straightforward thanks to digital solutions.
• Virtual tours. Renters can evaluate properties remotely.
• Electronic lease agreements. This speeds up the rental process.
Digitization simplifies interactions between tenants and landlords, saving time for both parties.
7. Role of Government Policies
The government actively regulates the rental market in Nuremberg, introducing support measures and controls. Key initiatives include:
• Rental price caps. Certain areas have limits on rent increases.
• Incentives for construction. Subsidies and programs support the creation of affordable housing.
• Environmental standards. Property owners are required to upgrade their buildings to improve energy efficiency.
These measures aim to stabilize the market and ensure housing affordability for various population groups.
8. Challenges in the Market
Despite progress, the rental housing market in Nuremberg faces several challenges:
• Insufficient supply. High demand is not being met due to a limited number of new properties.
• Rising prices. Rental costs continue to climb, especially in high-demand areas.
• Barriers for landlords. Stricter regulations and tax burdens complicate property management.
9. Future Prospects
In 2024, the rental housing market in Nuremberg is likely to develop in the following ways:
• Increased suburban construction. New projects will help ease pressure on the city center.
• Growing popularity of alternative housing forms. Co-living and micro-apartments are gaining traction among young people.
• Enhanced focus on sustainability. Energy-efficient technologies will continue to influence property prices and demand.
Conclusion
The rental housing market in Nuremberg and its surrounding areas remains dynamic in 2024, although it faces significant challenges. High demand, rising prices, and tenants’ growing expectations for quality housing add complexity to the market. Nonetheless, infrastructure development, government support, and digitization offer new opportunities for all market participants.