For years, it’s been a bubble inflated by easy money and artificially low mortgage rates, fueled by the European Central Bank’s Negative Interest Rate Policy (NIRP). It was all fine and dandy when mortgages were near zero percent. But now that rates have climbed to 4% and even 5%, reality has come crashing down. What was once considered affordable has now become a distant dream, especially for young adults with families.
In Germany, a country that once boasted an almost steady housing market, things have gotten worse. Thousands of young people and families who thought they could one day buy a home are now locked out of the market. The dream of owning even a modest house is slipping further and further away. People can’t even afford to buy small homes anymore, let alone the larger, more desirable properties.
RIP German and European real estate market pic.twitter.com/xQjHUVskp2
— Michael A. Arouet (@MichaelAArouet) March 14, 2025
If this plays out the 💩will really hit the fan pic.twitter.com/NvpbGCS24W
— Northstar (@NorthstarCharts) March 14, 2025
Germany should better hurry up to buy all those tanks… https://t.co/KpUlfvNPFu pic.twitter.com/iAHozFJv73
— JustDario 🏊♂️ (@DarioCpx) March 14, 2025
European markets soar as Germany moves to lift ‘debt brake’ and raise defence spending