The Cologne Institute for Economic Research (IW Köln) has found out more about the "New challenges for home ownership" on behalf of Deutsche Reihenhaus AG. One of the findings of the study was that fewer and fewer Germans are able to afford home ownership.
While a couple with a net income of €3,730 (median income household) could still afford 40% of the properties on offer at the beginning of 2022, by the end of 2022, according to the study, this figure had fallen to just 28%. Even wealthy couples with a median income of €5,000 net are increasingly being left empty-handed. While they were still able to afford 62% of the properties on offer at the beginning of 2022, by the end of 2022 this figure had fallen to 47%.
However, high inflation is not only making property buyers reluctant to buy, but is also causing problems on the rental housing market. In the past, tenants in cities who bought property usually moved to the outskirts of the city. As a result, rental apartments became available again. Now fewer tenants are buying property. The demand for rental apartments could therefore become greater than the 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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