Overview
- IW’s Michael Voigtländer forecasts purchase prices to increase by roughly 3% to 4% next year, with larger gains possible in major cities.
- Rents climbed in 2025 by about 4% nationwide and up to 8% in big cities, according to a DIW study.
- New construction continues to undershoot demand, with IW estimating around 235,000 completions this year and about 215,000 in 2026 versus a need of roughly 320,000 annually.
- Mortgage costs remain elevated near 3.7%, and brokers expect 3.5% to 4.0% in early 2026, restraining affordability and building activity.
- Demand is sustained by more single-person households, ongoing net migration and rising real wages, with significant inheritances helping many buyers assemble larger down payments.