More about the "New Challenges for Home Ownership" was found out by the Cologne Institute for Economic Research (IW Köln) on behalf of Deutsche Reihenhaus AG. One of the findings of the study was that fewer and fewer Germans can afford home ownership.
Whereas a couple with a net income of €3,730 (median income household) was still able to afford 40 percent of the properties on offer at the beginning of 2022, by the end of 2022 it was only 28 percent of the properties on offer, according to the study. Even rich couples with a median income of 5,000 euros net are increasingly coming away empty-handed. Whereas they were still able to afford 62 percent of the properties on offer at the beginning of 2022, by the end of 2022 they were only able to afford 47 percent of the properties on offer.
However, high inflation is not only making real estate buyers reluctant to buy, it is also causing problems in the rental housing market. Tenants in cities who bought property used to mostly move to the outskirts of the city. Rental apartments thus became available again. Now fewer tenants are buying property. Demand for rental housing could therefore become greater than demand for property, and rents could therefore continue to rise. The full study can be found at iwkoeln.de.
Source: iwkoeln.de
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