Cost of living in the Holzminden district: Living is cheap here!

Cost of living in the Holzminden district: Living is cheap here!

In this day and age, it can hardly be denied that the cost of living in large cities in Germany represents a noticeable burden. Especially in the seven largest cities, including Berlin, Hamburg and Munich, the annual average spending on housing and living in 2024 is a whopping 11% higher than the national average the district newspaper reported. This is well supported by studies from IW and BBSR, which show that regional price differences have remained largely constant in recent years.

But what about rural areas? The districts in Lower Saxony in particular stand out here. The Holzminden district made it to 7th place out of a total of 400 districts with a cost of living that is 9.6% below the national average. Things get even cheaper in Northeim, which takes 13th place. Other districts such as Goslar, Hameln-Pyrmont and Wesermarsch round off the list of the cheapest regions, which could be a reason for many to give country life a chance.

Cost of living comparison

In fact, rural areas are often cheaper, largely thanks to lower housing costs. Rents in large cities can be up to 50% higher than the national level, while rents in rural areas are in many cases up to a third cheaper. This makes living in rural areas an attractive option for many people to ease the burden on their own financial situation, explains an IW expert. Inflation was high in Germany between 2022 and 2024, but the regional price differential remained stable. The affordability of a city therefore depends heavily on housing costs.

The Federal Statistical Office sets a monthly inflation rate based on 687 product classes and around 300,000 pieces of data, such as the IWD reported. Despite this recording, regional price differences often cannot be adequately documented. For this reason, the IW and the BBSR have started a project to close this statistical gap in order to use automated data collection to develop a regional price index that makes the price level in different regions comparable.

The most expensive regions in Germany

If we take a look at the most expensive regions, we find Munich at the top with a price level that is over 25 points above the average index value. The Munich district is the second most expensive place, followed by Starnberg and Fürstenfeldbruck. Six of the seven most populous cities rank in the top 16 places. For those who still want things relatively cheap, the cheapest 20 cities and districts are generally found in eastern Germany, where the price level is 4.3% lower compared to the west, he said BBSR report.

The analysis clearly shows that anyone who wants to pay attention to the costs as a tenant or someone looking for an apartment should also take a look at the respective living regions. There is a clear trend that apartment rents in large cities will continue to rise in the coming years. Those who look around early have the best chance of a quieter and more economically attractive life.