Significant Increase in Heating Costs for German Tenants

A recent analysis by real estate service provider Ista has revealed a substantial rise in heating costs for rental households across Germany in 2023. The study, which evaluated around 800,000 heating cost bills, indicated that the average cost per kilowatt hour increased by 7 percent for district heating, 34 percent for heating oil, and 44 percent for natural gas compared to 2022. These figures take into account the state-imposed price caps for gas and district heating that were in effect during 2023.

Despite milder weather and more economical heating practices at the beginning and end of the year, overall heating consumption in 2023 was slightly lower than in 2022. However, tenants still faced significant cost increases. For an average 70-square-meter apartment, annual heating costs rose by 2 percent to EUR792 for district heating, by 37 percent to EUR817 for natural gas, and by 30 percent to EUR1,095 for heating oil. "Many tenants will find themselves paying more to heat their apartments than ever before," stated Ista CEO Hagen Lessing. The company anticipates that many renters will need to make additional payments for gas and oil heating.

Tenants Demand Greater Transparency in Heating Consumption

In a separate analysis of monthly heating data from 350,000 apartments, Ista examined consumption patterns in Germany's 20 largest cities during the 2023/24 heating season, which spans from September to April. Adjusted for weather conditions, Stuttgart was the only city where tenants used less heating than the previous year, with a reduction of about one percent. Dresden saw a one percent increase, Munich two percent, while Bielefeld experienced a twelve percent rise in heating energy consumption. Overall, the heating season saw a five percent increase in energy usage across Germany compared to the prior year.

A representative survey conducted by YouGov on behalf of Ista in early May 2024 highlighted that many consumers are unaware of their actual heating consumption. Nearly 90 percent of respondents believed they used the same or less heating energy compared to the previous season, with only 4 percent acknowledging a higher usage.

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