Aachen, the historic border city in North Rhine-Westphalia, has become a focal point of Germany’s housing crisis in 2025. With its academic prestige, thriving regional economy, and cross-border location near Belgium and the Netherlands, the city continues to attract students, professionals, and families. But housing demand far exceeds supply, driving both rents and purchase prices higher and making the market increasingly competitive.
Rental Market: Soaring Costs, Shrinking Options
Rental prices in Aachen are rising rapidly. A one-bedroom apartment in the city center costs €640–700 per month, while outside the core prices range from €525 to €600. Furnished apartments charge a 20–30% premium, particularly attractive for international students and professionals. For families, the challenges are sharper: in sought-after neighborhoods like Lousberg or Burtscheid, three-bedroom homes now exceed €1,500 per month.
Demand from students adds further pressure. RWTH University enrolls over 47,000 students, many from abroad, creating a steady influx of renters every semester. Shared apartments (WGs) remain the fallback solution, with rooms priced at €350–500 plus utilities. Rentberry data shows the average rent in Aachen reached €1,679 in July 2025, a clear sign of the city’s eroding affordability.
Property Prices: High Barriers for Buyers
Buying in Aachen is equally demanding. Apartments in the city center average €5,400 per m², while homes outside the center cost around €4,050 per m². This places Aachen above the national secondary-city average of €3,400 per m², though below Munich’s €9,000 per m². Across Germany, new builds stand at roughly €5,500 per m², reflecting Aachen’s upper mid-range status.
Transaction costs add a significant burden. Buyers face a 6.5% property transfer tax, 1.5–2% notary and court fees, and up to 3.57% broker commission. On a €400,000 purchase, these costs reach €45,000–50,000, raising effective entry prices considerably.
National Context: A Widening Housing Gap
Aachen’s challenges mirror Germany’s national housing shortage. In 2024, completions fell to 251,900 apartments, a 14.4% drop from 2023 and far below the government’s annual target of 400,000 units. Building permits slumped to 215,000, the lowest since 2010. Analysts predict that, at this pace, only 60% of housing needs will be met by 2030.
Berlin is considering an extension of the Mietpreisbremse (rent cap) until 2029, which restricts new leases to a maximum of 10% above the local average rent. While intended to protect tenants, critics argue it risks deterring much-needed private investment.
Why Demand in Aachen Stays High
Several factors ensure that Aachen remains under housing pressure:
- RWTH University — Germany’s leading technical institution, drawing international students and researchers.
- Cross-border hub — proximity to Maastricht and Liège boosts commuting and labor market demand.
- Population growth in NRW — Germany’s most populous state continues to attract migrants from inside and outside the country.
- Lagging construction — insufficient new builds deepen the supply gap.
2025 Outlook: Growth and Pressure Ahead
Experts anticipate property price increases of around 2% in 2025, while rents may climb by 4–6%. For students and lower-income households, affordability is set to worsen, while investors benefit from higher rental yields. Apartments near RWTH and central locations are expected to maintain the strongest demand.
Practical Tips for Renters
- Search early: demand spikes before each semester.
- Look outside the center: suburbs such as Brand and Laurensberg offer cheaper alternatives.
- Consider WGs: shared housing helps reduce costs.
- Budget for utilities: Nebenkosten add 20–25% to monthly expenses.
Practical Tips for Buyers
- Account for extra costs: taxes and fees significantly raise purchase totals.
- Pick neighborhoods carefully: Burtscheid and Brand are family-friendly, while students cluster near RWTH.
- Use local agents: insider knowledge can reveal rare opportunities.
- Secure fixed-rate mortgages: protection against interest-rate volatility remains valuable.
Conclusion
Aachen in 2025 highlights the tension at the heart of Germany’s housing market: strong demand, limited supply, and rising costs. The city’s academic draw, cross-border economy, and demographic growth ensure lasting demand, but underbuilding continues to strain affordability. For tenants, early planning and flexibility are crucial. For buyers, Aachen offers long-term security but demands careful budgeting and strategy in one of Germany’s most competitive urban markets.
