Higher financing costs and increased material costs have hardly slowed down the house prices for a single-family home in Germany. A detached single-family house from the existing buildings with a living space of around 125 sqm, in a medium location and with average fittings will still have risen in price by 10.3 % in 2022. This development can still be explained by the excess of demand. In tur, the low supply and high purchase prices mean that prospective buyers are increasingly turning to the rental market, where prices have risen more strongly than in previous years.

If the purchase price is set in relation to the average annual gross wage, a statement can be made about the affordability of a single-family home for an average earner. The higher the price-income ratio (PIR), the more annual gross wages must be spent to buy a house with the above criteria. Bavaria remains by far the most expensive state in Germany with a PIR of 22.1, followed by Hesse, Baden-Württemberg, Hamburg and Berlin. These five states have not left their position as high-price regions within the federal states for over ten years.

The development of the PIR for Mecklenburg-Western Pomerania is striking, with an increase of 17.3 %. Affordability is thus clearly declining here, which can be explained by the rise in house prices by 25 % despite above-average wage increases.

In addition to the general increase in prices, affordability improved in Saarland and Saxony. In Saarland, this was achieved via a slight decline in purchase prices (-0.3 %) and, in Saxony, this was achieved thanks to above-average income growth of 5.9 %.

Other figures can be found here.