Housing prices for new apartments in Germany have reached a new record due to high demand and supply shortage, according to the Europace platform. The index of new apartment prices rose by about two percent in May compared to the same period last year, reaching a historic high. The index of prices for apartments on the secondary market also reached the highest level since October 2022. Experts note that a structural deficit in the housing market ensures stable demand, while the pace of new apartment construction remains insufficient. The new German government plans to increase the volume of new housing construction, including by easing building regulations, but the effects of these measures are expected to appear only after some time.
Political Perspectives:
Left: Left-leaning sources emphasize the structural deficit in the housing market and the need for increased public investment and regulation to ensure affordable housing. They highlight the social impact of rising prices on lower-income groups and advocate for government intervention to increase housing supply and protect tenants.
Center: Center-leaning sources report the facts about rising housing prices and government plans to ease regulations to boost construction. They focus on the balance between market demand and supply constraints, noting that the effects of policy changes will take time to materialize.
Right: Right-leaning sources stress the role of market forces in driving housing prices and may emphasize the need to reduce bureaucratic hurdles and promote private sector development. They might be skeptical about extensive government intervention and highlight the importance of deregulation to stimulate housing supply.
