sky-high Rents and Saxony's Response
Government in charge intends to maintain affordable rental prices in Leipzig and Dresden cities.
June 10, 2025, 7:06 PM (UTC)
The troubling rise in rent prices
The cities of Leipzig and Dresden, major metropolises in Saxony, have witnessed an alarming surge in rent prices for years. To combat this issue, the state government has imposed a cap on rental increases, reducing the allowable percentage from 20% to 15% in Dresden since 2014 and in Leipzig since 2018. Recently, the government extended this regulation for another two years. State Minister Kraushaar has urged new constructions as the ultimate solution to provide affordable housing.
The rent control cap: breaking down the regulations
The rent control cap dictates that the increase in rent for existing rental agreements in these cities is limited to 15% within a three-year period. Nationally, the cap allows a maximum increase of 20% within three years if the rent hasn't been adjusted for at least 15 months. In regions with tight housing markets, the respective state government can lower the cap to 15% to better protect tenants from escalating rents. The cap only applies to existing rental agreements and should not be mistaken for the rent brake, which pertains to new rentals.
Braking the trend: new constructions as the solution
"The housing market in metropolitan areas can be improved through the creation of new housing," emphasized State Minister Kraushaar. She has expressed satisfaction as federal and state funds for social housing were recently provided.
The rent brake: catching up
The rent brake functions differently, applying only to new rentals. In simple terms, the rent for a newly rented apartment may not increase by more than 10% compared to similar apartments in the locality. Moderizations or improvements to the property can affect the cap.
Leipzig and Erfurt tenants: taking charge
The Tenants' Association in Leipzig admired the rent-gouging app created by The Left Party and is advocating for legal reforms. Originating as an election campaign strategy, the app has already garnered significant attention, with around 800 excessive rent reports being submitted to the city since its introduction. In response, the city of Leipzig has planned to establish an online form on its website for collecting data on high rents within the city.
Federal funding: social housing promotion
Recently, Saxony has been allocated around 174 million euros from the federal government for social housing and student dormitories. Given the ongoing housing affordability challenges in Saxony, criticism about the amount of funding required to support social housing projects has arisen, with concerns about stalled projects and inadequate funding levels.
Listening in on Leipzig: radio stations cover the rent controversy
Our local radio station, SACHSEN - Das Sachsenradio, has provided updates on the rent cap and the new online form in Leipzig to report excessively high rents. Tune in for the latest information on this pressing issue.
Expired: the rent brake in Leipzig and Dresden
After being in effect since May 2022, the rent brake in Leipzig and Dresden will reach its expiration date at the end of the year unless the state government extends the regulation. Last February, the Bundesrat approved the legal basis for this regulation[1].
Audio: the regional Leipzig news
Catch up on the regional Leipzig news from SACHSEN - Das Sachsenradio for June 10, 2025, at 3:30 PM.
Extending the fight: taking action against excessive rents
Since the introduction of the rent-gouging app, the Leipzig Social Welfare Office has been flooded with reports of excessive rents. Recognizing the need for action, the city of Leipzig has vowed to create an online form for reporting high rents that violate legal restrictions[2].
連復：租金高但是倉西亞州政府環境還有應對的空間
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- The troubling rise in rent prices has prompted the state government of Saxony to impose a cap on rental increases, capping the allowable percentage at 15% for both Dresden and Leipzig.
- In an effort to combat sky-high rents, State Minister Kraushaar is advocating for the creation of new constructions to provide affordable housing, with federal and state funds recently provided for social housing.
- Realizing the necessity of addressing excessive rents, the city of Leipzig has vowed to create an online form for reporting high rents that violate legal restrictions, with the Rent Brake regulation set to expire by the end of the year unless extended.
- In the housing-market, politics, and general-news landscape, investing in real-estate in Saxony may be a challenging yet promising endeavor as the regional government continues to take action against excessive rents and promote affordable housing.
