Is there still a marked difference in living costs between the former West and East Germany?

Question

I'm spending some time in the former East next year, and I have heard that it's still much cheaper to live there than in the west. How true is that?

Answer 1

Yes to a certain extent, but since they use the Euro too your still getting screwed.

Answer 2

Depending upon the city you stay in housing prices can be really low. For example in my hometown Magdeburg in the East you pay around 300 EUR warm rent per month for a good small 1- or 2-bedroom flat with 40 sqm directly in the city in a nice, desirable area. For a similar place in Augsburg I would have to pay around 550 EUR per month warm rent. A room in a shared flat for a student can be had in Magdeburg for 150 EUR warm rent per month, in Augsburg it is around 250 EUR per month. (Both cities are about the same size with similar infrastructure and local industry, that is why I'm comparing them.) In Stendal, 60 km north of Magdeburg rental prices are even lower - an appartment with 50 sqm can be rented for as low 200 EUR per month warm rent.

The reason for this is that during the 70's and 80's the former GDR had a huge housing and building plan. They built large numbers of prefabricated social housing complexes, "a rabbit box for ever GDR citizen". In Stendal these were built to accomodate workers employed at the local nuclear power station (same type as in Chernobyl). They started building the nuclear plant and the appartments to house the huge numbers of workers at the same time. They were scheduled to be finished in 1991. The houses were finished, but not the power plant. So all the people, the families of the construction workers and the nuclear power plant future employees that had already been living in Stendal moved away. In 1998 Stendal had a surplus of over 5000 empty appartments. It has gotten better as a lot of blocks were razed, but still landlords are happy to have tenants at all. Similar stories can be told of a lot of other small cities in the East.  Unemployment is high too, so in addition young people move away to the west.

Other than that the cost of living is similar. Food is slightly cheaper, as people have a lower average income and competition among shops is steeper. The low rents and real estate prices for shops have a positive impact on prices too. It is just a few cents though, so you need to really scrimp to make it a difference of more than 5 EUR per month, but hey!

Another difference is the prices I pay at the cinema. In Magdeburg I pay usually between 4.50 EUR to 9 EUR in order to see a movie at the local Cinemaxx. In Munich prices started at 7.90 EUR.  

Finally: Due to the high unemployment and the low rents lower wages are being paid in the east. This means lower costs for certain services - or at least more people willing to work cash in hand for painting your walls, doing gardening work, helping you move, .... Not that these prices affect your cost of living much when you are a student, but be aware of it when you seek work to support yourself.

Answer 3

There remains a difference, particularly in the area of rent, and largely because of the older buildings that prevail (I think similar types of accomodation are at similar costs, with west still costing a bit more).  But other living costs are close to at a par, and the gap is closing.

That said, bargain apartments can be identified and had more easily in the former east.

Answer 4

Life is cheaper ( 10 to 30% ) in East Germany, but meantime the prices increase more than in the western part.

Answer 5

yes, somewhat

Answer 6

the living costs are usually a little lower, especially rent since there are a lot of empty apartments. Food and gas usually run about the same no matter where you go (it is slightly cheaper in the East). Unemployment is a lot higher though. it all depends on where you go. the exhibition cities like Leipzig have caught up to Western standards. Have fun, most people don't know how to appreciate the nice places East Germany has to offer (make sure you visit Potsdam!)

Answer 7

yes there is also alot more poverty.

Answer 8

Yes its cheaper to life in East Germany because after the wall fell a lot of people left.

Answer 9

Yes, the East ist generally much cheaper, but there is also more poverty and unemployment in that area.

Answer 10

Not all that true. Well, housing is cheaper because so many people moved over to the west and there are a lot of vacant units for rent. Depends too which city you're in.  I'd be more concerned about the exchange rate. The US has let the dollar fall so much so that you lose about 30 cents on the dollar just in the exchange.

Answer 11

It is a bit cheaper in the East. Flats are not so pricey, the beer in pubs is cheap and also tickets for the bus or tram have better prices than the West (according to my friend who lives in the West and visited Leipzig for a couple of days).