rents

Housing Price Index Q2/2026: "Frantic Standstill" on the Price Front

“There is currently a frantic standstill at the price front of the housing market,” says Dr Reiner Braun in his latest commentary on the Q2/2026 data of the empirica housing price index. Purchase prices show little movement nationwide, while only rents continue their steady rise.

Housing Bubble Index Q1/2026: It hinges on interest rates

The severity of the housing market bubble risk continues to ease slightly, as rents are currently rising faster than house prices in many areas. As a result, the potential for price falls is diminishing, albeit at a slower pace than immediately following the change in interest rates. The spread of the bubble is currently stagnating, and the number of districts at risk remains high.

Housing Price Index Q1/2026: Prices show no clear trend

Since interest rates began to rise, advertised sale prices have recovered somewhat, as there was a severe shortage of properties and new-build construction has slumped. Affordability has also improved since then: interest rates have fallen slightly and incomes have risen significantly. However, with the current surge in inflation, the situation is likely to deteriorate again in the short term.

Housing Bubble Index Q4/2025: Rent rise eases bubble risk

Rising rents and a slump in new construction are slowing down the risk of a bubble, but housing prices are still not completely out of the woods. All sub-indices are declining. The sub-index for price-income (-2 points) shows the sharpest decline. In contrast to the last quarter, however, there are only moderate changes across all indices. The overall index declines marginally (-1 point).

First empirica housing market report: no recovery in sight

The independent economic and social science research and consulting institute empirica has published its first housing market report. It provides a comprehensive outlook on the housing market in 2026. The study focuses on demand, supply and price developments. New construction has collapsed, while rents are rising. Despite stagnating population figures, the housing shortage will continue to increase. High interest rates are causing purchase prices to stagnate once again.

Housing Price Index Q4/2025: Buying eases, renting tightens

The empirica housing price index for Q4/2025 shows a differentiated development on the German residential real estate market. Advertised purchase prices had recently recovered, benefiting from scarcity and rising incomes, but are falling or stagnating in the current quarter, depending on the segment, on average across all districts in Q4/2025. Despite stable interest rates and scarcity, these are signs of continuing uncertainty in the market.

Housing Bubble Index Q3/2025: Bubble risk decreases

All sub-indices, with the exception of the construction loans sub-index (+1 point), are down. The completions sub-index (-30 points) has fallen particularly sharply. As a result, the overall index is down across Germany (-8 points).

Housing Price Index Q3/2025: Market trends and 2025 revision

The empirica housing price index for Q3/2025 shows differentiated developments on the German residential real estate market. Despite rising interest rates, advertised purchase prices have recovered, benefiting from scarcity and higher incomes, but also from a habituation to the new interest rate level. Currently, however, increasing uncertainty (caused by the threat of cuts in household income due to the loss of competitiveness of German companies) is slowing down the elimination of scarcity.

Housing Bubble Index Q2/2025: Rent and price come together

The empirica housing bubble index shows the regional spread of a bubble risk. The multiplier sub-index (-1 point) has declined slightly. The sub-indices for construction loans, completions and price-income remain unchanged (+/-0 points).

Housing Price Index Q2/2025: Prices rise further

The empirica housing price index for Q2/2025 shows differentiated developments on the German residential property market. In the case of existing properties, prices for detached and semi-detached houses stagnated, while condominiums recorded slight increases. Rents for existing flats rose much more sharply. In the new-build segment, prices for single-family and semi-detached homes rose more sharply, while rents increased at a similar rate to existing properties.

Housing Bubble Index Q1/2025: Bubble risk stagnates

When rents rise faster than purchase prices, it gives hope to many who dream of owning their own home. This is because buying owner-occupied property is then more worthwhile than renting. At the same time, this trend acts as a safety net for the property market: the more rents catch up with purchase prices, the lower the risk of a price collapse - the risk of a bubble decreases.

Housing Price Index Q1/2025: Purchase prices recovering?

The latest data from the empirica housing price index for Q1/2025 is available. In the last quarter, asking purchase prices for new builds rose slightly. There are now also signs of a slight increase in existing properties. Rents continued to rise, albeit at a slightly lower rate than last year.

Housing Bubble Index Q4/2024: Rents and prices come together

The empirica housing bubble index shows the regional spread of a bubble risk. The price-income (-1 pts.) and multiplier (-4 pts.) sub-indices are falling. By contrast, the construction loans sub-index (+2 pts.) is rising slightly, while the completions sub-index remains unchanged (+/- 0 pts.).

Housing Price Index Q4/2024: New builds at all-time high

The latest data from the empirica housing price index for Q4/2024 is now available. The advertised average prices for new-build apartments are thus once again setting new records, while advertised average prices for single-family homes are stagnating at a lower level. Advertised rents have remained unaffected by the crisis or have even risen consistently as a result.

empirica regio: contract rents rise slower than asking rents

Median contract rent will be EUR 7.21 per m² in 2023
Strongest increase in new contract rents in Dahme-Spreewald, lowest rents in Central Saxony
City of Munich most expensive place to live in Germany at EUR 16.30 per m² - increase of 21 per cent in five years

Housing Price Index Q3/2024: Slight decline in rental growth

The empirica housing price index is available up to Q3/2024. In the current quarter, asking prices for new builds continued to rise. Purchase prices for existing properties remained stable. The increase in rents also remained, but weakened somewhat compared to the previous quarter.

Housing Bubble Index Q2/2024: Distribution stagnates

The current sharp rise in rents contrasts with the moderate increase in purchase prices. This is positive for the risk of a bubble, as the high valuation level of property is increasingly justified. At the same time, the slight fall in interest rates is leading to an increase in new lending for residential construction, which in turn harbours the potential for further price rises and thus increases the risk of a bubble.

Housing Price Index Q2/2024: Prices stable, rents rise

Purchase prices generally appear to have bottomed out and are falling more slowly than before or are already rising slightly. However, there are no uniform trends, as there are still major differences depending on the segment or region. In general, purchase prices for new builds tend to rise more than for existing properties, for condominiums (ETW) more than for single-family homes and in urban regions more than in federal states.

Housing Price Index Q1/2024: Bottom appears reached

The purchase prices in the empirica housing price index for Q1/2024 indicate that the bottom has been reached. This is shown by the new data from the empirica housing price index for Q1/2024. While new construction prices continue to show a stable trend, purchase prices across all years of construction should now also have reached a stable level. The first increases can already be observed across all years of construction in cities with a rather low purchase price level.

Rent burden in Germany continues to rise

Net rents in major German cities (A-cities) are 70 per cent more expensive than 13 years ago. The rent burden for low-income households is 31 per cent across Germany. And: the development of rents is dependent on the development of incomes, particularly in the south. These are the key findings of a new study by economic and property data provider empirica regio GmbH. Our conclusion: The housing market is facing major challenges. The demand for new and affordable housing in Germany continues to grow. And: those who can, will stay in their own home.