German housing prices set to rise as market remains under pressure [Yahoo! Finance]
ING Group, N.V. (ING)
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Source: Yahoo! Finance
Meanwhile affordable housing remains in short supply, particularly in urban areas, and pressure on rents remains high. Tenants and buyers can expect little in the way of short-term relief as construction costs and interest rates have risen and the price of flats and houses is likely to further increase in 2026, said Michael Voigtländer, real estate expert at the German Economic Institute (IW). "I expect a moderate increase of 3% to 4% but not as rapid as in the 2010s," he said. The economic crisis, and associated job cuts, is also dampening the property market - but other factors are also driving rising rents and purchase prices. A growing number of people are living alone, driving up demand for living space regardless of population size, said Carsten Brzeski, chief economist at ING Bank. "The average household size is falling continuously and currently stands at 2.0 people." The rate was 2.3 people in 1991 but people are starting families later and the birth rate is falling,
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