Schwerin: Cheapest state capital or a deceptive illusion?

Schwerin: Cheapest state capital or a deceptive illusion?

On November 16, 2025, Schwerin will come into focus because the Taxpayers' Association (BdSt) has published the additional housing costs for the 16 German state capitals. The residents of a single-family home in Schwerin are certified to have the lowest additional housing costs, with annual expenses of 1,606 euros. In comparison, residents of Stuttgart have to expect a whopping 2,559 euros. These additional living costs include, among other things, property tax, fees for water, waste and the broadcasting fee, but do not include signal costs from private providers such as heating or electricity. In other words: For Schwerin residents, living is cheap on paper, but what about the realities of life within the city?

The calculations are based on a three-person household in a 120 square meter single-family home on a 500 square meter property. Interestingly, the average additional housing costs in the 16 state capitals rose from 1,767.96 euros in 2016 to 1,944.49 euros in 2024. Schwerin only recorded an increase of 97 euros in the same period, which is well below the national average. [Schwerin.news] reports that the property tax in Schwerin is 321.18 euros, while similar large cities like Hamburg and Bremen pay over 1,000 euros.

Social inequality in Schwerin

Despite these numbers, the social division in Schwerin is clear. The segregation index describes that 40% of the poor population would have to move in order to achieve a more equal distribution of income and living conditions. This suggests that the statement that Schwerin is the cheapest state capital in Germany only reflects the surface of reality and not the actual challenges of many tenant households, which, according to the BdSt comparison, suffer from high additional costs.[Schwerin.news]

Another interesting aspect is that in Mecklenburg-Western Pomerania, to which Schwerin belongs, additional housing costs account for an average of 39% of the basic rent, which is above the national average of 32%. This makes it clear that not only the number of additional costs, but also their burden has a strong impact on the tenants' already limited budget. It is a challenge that should not be underestimated and is strongly influenced by people's real life situations.

Outlook for future developments

From 2025, property tax in Hamburg will be halved, while it has increased in Stuttgart. This could influence the ranking of the most expensive additional housing costs in the German state capitals. While Schwerin is currently the cheapest place for homeowners, this could change in the future if political and economic developments are taken into account.[Schwerin.news]

The development of the cost of living and the challenges regarding social inequality in Schwerin should therefore be closely monitored not only by the city administration's management, but also by the citizens themselves. Because there is something at stake - the need to take the reality of tenant households seriously and improve the quality of life in all parts of the city. Schwerin is doing a balancing act between affordable housing costs and social responsibility, which is not easy but definitely needs to be tackled.