Mostly due to the ridiculously high costs for renting or buying property (apartements and houses). There are too many people in Munich, the city is overcrowded with too much people earning and/or having too much money and ever more people will come in the next decades.

Munich consistently ranks as the most expensive city in Germany due to its exceptionally high quality of life, robust economy, and limited housing supply. The city is a major global hub for high-tech industries, automotive giants (like BMW), and insurance firms, which drives up local salaries and, consequently, the cost of services. Munich's strict zoning laws and historical preservation efforts mean that new apartment buildings are slow to appear, creating a "bidding war" environment for rentals that are often 40% higher than in Berlin. Additionally, Munich’s proximity to the Alps and its reputation for safety and cleanliness make it a highly desirable destination for wealthy international expats and students. The "Munich Premium" also extends to tourism; high demand for hotels, especially during Oktoberfest or major trade fairs, allows establishments to maintain some of the highest nightly rates in Central Europe.