Expert analyzes: Real estate prices are falling, housing shortage is getting worse

Expert analyzes: Real estate prices are falling, housing shortage is getting worse

According to a report by www.n-tv.de,

Property prices have fallen significantly for several months, which is surprising given the years of continuous increases. Nevertheless, this price decline has not led to an alleviation of the housing shortage. On the contrary, rents have continued to rise, which is exacerbating the problem. This development raises some questions, particularly regarding the long-term impact on the real estate market.

Falling real estate prices could lead to short-term financial losses for real estate investors. However, in the long term, this could lead to more people being able to afford to buy a property, which in turn increases demand. In the long term, however, rising rents could mean that fewer and fewer people can afford rental apartments, which will further worsen the housing shortage.

Overall, this development on the real estate market and the rising rents are a signal that structural changes in the real estate sector are necessary in order to find a sustainable solution to the housing shortage in the long term. Politicians and the real estate industry must work together to find solutions that do justice to both investors and tenants.

It remains to be seen how these developments will develop in the coming months and years and what measures will be taken to alleviate the housing shortage and create a new balance in the real estate market.