Home Prices in Saarland Remain Moderate - Real estate prices in Saarland are more budget-friendly
In a recent study by the Institute of German Economics (IW) and mortgage lender Interhyp, Saarland has been identified as a region in Germany where buying a single-family or two-family house is relatively affordable. The study used an affordability index that compares the monthly mortgage rate to the net income of a model household in the respective region.
The affordability index for Saarland stands at 136, which is well above the national average of around 100. This means that in Saarland, only 35% of the income goes into the rate, which is the threshold at which a real estate purchase is classified as affordable.
Saarland's high affordability index value places it at the top of the federal state comparison, with Saxony-Anhalt (139) and Thuringia (131) following closely behind. In contrast, regions like Bavaria (84), Berlin (87), and Hamburg (90) have lower affordability index values, indicating a less affordable housing market.
Within Saarland, the district of Saarpfalz has an affordability index of 147, while the Regional Association of Saarbrücken, Saarlouis, Neunkirchen, and the district of St. Wendel all have index values of 151, 151, 159, and 164, respectively, as of April 2025. Notably, no county or city in Saarland has an affordability index below 100.
Factors such as housing prices, income levels, rent-to-price ratio, and mortgage rates and conditions contribute to the evaluation of a housing market's affordability. However, without specific data from the IW and Interhyp studies regarding Saarland's two-family houses compared to other regions, it is challenging to definitively conclude whether Saarland is more affordable.
For precise comparisons and a better understanding of the local market trends, consulting the mentioned studies directly or contacting local real estate experts is advisable. Nonetheless, the high affordability index values in Saarland suggest that the region offers a relatively affordable housing market compared to other parts of Germany.
Engaging in this affordably priced housing market in Saarland could potentially be an excellent opportunity for investing in single-family or two-family houses. This could align well with one's personal-finance strategies, given the relatively low ratio of monthly mortgage rates to net income. Furthermore, the high affordability index also signifies that vocational training programs in the region might attract prospective students seeking to improve their skills and career prospects without incurring significant financial burden.
