Data analysis: the gap between income and new construction prices has widened, …

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Hamburg (ots)

The development of new construction prices and wages in the metropolises at a glance:

  • After a Corona dip in 2020, incomes in the five metropolises grew again in 2021, similar to the time before Corona.
  • However, because new-build prices also rose again in double-digit percentages (except for Frankfurt), the gap between income and new-build prices widened in all five metropolises.
  • In 2021, newly built apartments in Cologne became the most expensive. In a metropolitan comparison, however, square meter prices are still the lowest here (6,420 euros on average).
  • In Munich, one square meter of a new building costs the most (10,650 euros) and was in the five-figure range for the first time in 2021. Munich residents can afford the fewest new square meters on their salary.
  • With an increase of 55 percent, the residents of Frankfurt had to accept the biggest jump in the prices of new buildings in the last five years. In Hamburg, the price increase was the lowest during this period.
  • Berlin stands out with the lowest gross wages (3,631 euros in median). Because new construction prices have risen rapidly (by 54 percent since 2017), the relationship between wages and property prices is the most unfavorable here after Munich.

“New construction prices are particularly high in the metropolises and are therefore particularly difficult to afford for people with an average income,” says immoverkauf24 CEO Cinja Kinnemann. “While wages have grown between 10 and 16 percent over the past five years, new construction prices have often doubled. But there are also encouraging signs for those willing to buy: Not only are property prices stagnant in many places, but the supply of properties is also growing. Because more and more owners want theirs. Bringing real estate to the market now to take advantage of the still high prices. We are currently experiencing this every day in our consultations.”

The development of new construction prices and income per metropolis in detail:

New building prices and gross wages in Hamburg

The square meter of a new apartment in Hamburg cost an average of 7,668 euros in 2021, increasing by 10.2 percent within a year. Within the past five years, Hamburg’s new construction prices have increased by 37 percent, but less than in the other big cities.

Income increased again in 2021, corresponding to the years before Corona: by 2.6 percent to 3,962 euros gross per month (median). Nevertheless, the gap between new construction prices and incomes has again widened significantly. Hamburgers can only cover 52 percent of the average square meter price with their gross income. The year before it was still 56 percent, five years earlier 64 percent.

New construction prices and gross wages in Berlin

The average square meter price for new Berlin apartments was 7,347 euros in 2021, which is relatively low in a metropolitan comparison. Only in Cologne do buyers pay less. However, prices in the capital have risen by around 11 percent since the previous year. With as much as 54 percent over the past five years.

Berliners earn a median of 3,631 euros gross, which is the lowest in a metropolitan comparison. Although the increase in income has been relatively significant at 4.2 percent since the previous year, the gap between income and new construction prices has widened: Berlin income only covers about 50 percent of the average square meter price for new construction, the ratio is only less favorable in Munich.

New construction prices and gross wages in Cologne

Cologne stands out in terms of the cheapest new-build prices: “Only” the square meter costs “only” 6,420 euros on average. However, the price increase since the previous year is significant: the prices of new construction have increased by around 26 percent.

At the same time, the inhabitants of Cologne had to be satisfied with the lowest increases in gross wages: Wages rose by only 1.9 percent in the second year of Corona to a median of 3,988 euros. Despite the violent property price increases, the residents of Cologne can cover the largest part of the square meter price with this salary in a city comparison, namely 62 per cent. A year earlier it was 70 percent, five years earlier it was 86 percent.

New construction prices and gross wages in Frankfurt

In 2021, square meter prices for new buildings in Frankfurt rose the lowest in a metropolitan comparison at 8.4 percent. Nevertheless, Frankfurt prices are the second highest at EUR 8,290 per square meters. Over a period of five years, inflation was even the strongest in the financial metropolis, with a plus of 55 percent.

Gross wages in Frankfurt grew last year by 2.7 percent to 4,605 ​​euros (median), and thus almost at the Munich level. At least 56 percent of the square meter price can be covered with this, the ratio is only better in Cologne (with 62 percent).

New construction prices and gross wages in Munich

New apartments in Munich cost an average of 10,650 euros per square meter in 2021, which is a significant 15 percent more than the previous year. Only residents of Cologne had to accept an even bigger price jump in this segment. Over the past five years, the price increase has been around 47 percent.

Although residents of Munich have the highest gross salary, namely a median of 4,681 euros, they can afford the fewest square meters of new construction. The monthly salary covers only 44 percent of the average square meter price; the ratio is the most unfavorable in a metropolitan comparison.

Here is the full report with figures and charts.

Sources: The property prices are derived from the market reports of the expert committees in Hamburg, Berlin, Cologne, Frankfurt and Munich for 2021. The gross wages are based on information from the Federal Employment Office as of 31 December 2021.

Press contact:

immoverkauf24 GmbH – a company in the Scout24 group
Press contact: Charlotte Salow
presse@immoverkauf24.de
Telephone: 040 / 300 3965 19

Original content from: immoverkauf24, transmitted by news aktuell

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