No Germany-wide housing bubble but overvaluation in regional markets and segments

Artikel

Although the housing prices in the 127 largest German cities have surged strongly in recent years, there is still no sign of a Germanywide housing bubble. In comparison with 2009, the price of condominiums has risen by around 55 percent. Single-family houses cost between 38 and 45 percent more in 2016 than seven years prior, and building lot prices have risen by around 63 percent. The study at hand shows that concerns about a national housing bubble are largely unfounded. There may, however, be bubbles on the local level -primarily in the relatively small segment of new multi-story apartment buildings but also with regard to the valuation of undeveloped residential land. Given the situation, it seems appropriate that financial regulators have opened up more policy options in order to intervene when the market trend proves unsustainable. But because the measures were diluted in the federal legislative process, the need for policy-related action remains.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: DIW Economic Bulletin ; ISSN: 2192-7219 ; Volume: 7 ; Year: 2017 ; Issue: 25/26 ; Pages: 255-264 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Forecasting Models; Simulation Methods
• Subject: house prices ; speculative bubble ; explosive root ; German cities

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kholodilin, Konstantin A. ; Michelsen, Claus
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/162880
• Last update: 10.03.2025, 11:43 AM CET