World
Germany: Homeownership Remains Most Affordable Away From Major Cities
High mortgage rates and property prices are making homeownership difficult in Germany, particularly in major cities. An Empirica study commissioned by building society LBS nevertheless finds that some rural regions remain affordable. Based on a limit of 35% of net household income for monthly financing costs, around 39% of tenant households aged 30 to 44 could manage the payments. Initial savings are a much greater barrier: fewer than 6% could cover the deposit and additional purchase costs without assistance. The average required equity contribution is about €131,000, more than twice the 2010 level.