13.9% of Germans are overburdened by housing costs. The EU average is 9.3%. This is shown in a new infographic from Kryptoszene.de. This price development is affecting more and more German citizens, including those profiting from previous investments in real estate.
Although Germans are more burdened than most in terms of housing costs, the situation in Greece is particularly striking. There, 36.2 % struggle with housing costs. Bulgaria comes second in the ranking, followed by Denmark and Germany.
Germans spend around 35.6% of their disposable income on housing, energy and maintenance. This is by far their largest single expenditure, especially in metropolitan areas across the west of Germany, a high proportion of income ends up being spent on housing.
People in Munich spend an average of 29.5% of their total income on rent.
Real estate companies have recently been profiting considerably from this trend, as a glance at the price development of selected stocks shows. Deutsche Wohnen’s market value has climbed by 26.9% within the last 365 days, while DAX competitors Vonovia have also gained 15.9% – all of this over a period in which the DAX lost around 10% of its value.
“Despite adverse market conditions due to the coronavirus crisis, property prices have recently continued to rise,” noted Kryptoscene analyst Raphael Lulay.
“Investors have been able to profit considerably from this, in stark contrast to those suffering increasingly from rising prices. The outlook is relatively bright for East German states, where housing costs form a far smaller proportion of total private expenses.”