Solution-processed hybrid perovskites are of great interest for use in photovoltaics. However, polycrystalline perovskite thin films show strong degradation in humid atmospheres, which poses an important challenge for large-scale market introduction. With in situ grazing incidence neutron scattering (GISANS) we analyzed water content, degradation products, and morphological changes during prolonged exposure to several humidity levels. In high humidity, the formation of metastable hydrate phases is accompanied by domain swelling, which transforms the faceted crystals to a round-washed, pebble-like form. The films incorporate much more water than is integrated into the hydrates, with smaller crystals being more affected, making the degradation strongly dependent on film morphology. Even at low humidity, water is adsorbed on the crystal surfaces without the formation of crystalline degradation products. Thus, although production in an ambient atmosphere is of interest for industrial production it might lead to long-term degradation without appropriate countermeasures like postproduction drying below 30% RH.