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Housing Affordability in Germany and its Dynamics

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  • Felix Florian Balz

Abstract

The study examines housing affordability in Germany from 2017 to 2023 in light of rising real estate prices and challenges in the housing market. It uses the Housing Affordability Index to identify trends and patterns and propose policy measures to tackle the problems. The results show regional differences, with large cities in particular facing rising prices. Overall, the housing affordability burden has worsened across the country, with the western federal states being particularly affected. Future research should focus on evaluating policy measures and analyzing future trends in order to develop appropriate strategies and make predictions for the future.

Suggested Citation

  • Felix Florian Balz, 2025. "Housing Affordability in Germany and its Dynamics," Prague Economic Papers, Prague University of Economics and Business, vol. 2025(1), pages 78-97.
    • Handle: RePEc:prg:jnlpep:v:2025:y:2025:i:1:id:885:p:78-97
    DOI: 10.18267/j.pep.885
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    More about this item

    Keywords

    housing affordability; housing affordability index; property price boom; real estate; real estate economics; real estate price bubbles; residential property;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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