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Heilbronn Tops IW Ranking of Where German Incomes Go Furthest

The ranking adjusts incomes for local prices to show how high housing costs push cities down.

Overview

  • The Institute for the German Economy’s analysis, released Sunday, ranks 400 regions by price‑adjusted income and puts Heilbronn first at €39,424 per person for 2023, ahead of the Landkreis Starnberg.
  • Berlin records the weakest purchasing power among states at €24,656, as prices run more than 6% above the national average despite only mid‑table nominal incomes.
  • Rural and peri‑urban areas dominate the top spots because lower rents raise real buying power, while cities with costly housing fare poorly, with Offenbach last at €21,430 and Ruhr cities like Gelsenkirchen and Duisburg also near the bottom.
  • IW cautions that the figures rely on 2023 data and regional averages, and that Heilbronn’s lead is boosted by large profit withdrawals from businesses that lift mean incomes but reach few households.
  • Researchers point to housing as the main driver of gaps and argue for faster urban building and better links to surrounding regions, which could leave city renters with more money after rent and support smaller centers like Olpe that made the top 10.