ᐅ Is the real estate market increasingly forcing families to build their own homes?

In our case, we ultimately decided to buy only because we simply couldn’t find a four-room apartment in our dream neighborhood. Private landlords didn’t find us attractive enough as tenants, and for cooperative housing, families with higher social priority always took precedence. After more than a year of searching, we first moved into a 3.5-room apartment 4m (13 feet) away and started looking for a house from there – the old, partially renovated, small, and very noise-prone apartment was no longer manageable for us with a toddler and a baby (experiences like children screaming all night and neighbors knocking on the walls because they have to get up at 5 a.m. really take a toll on exhausted nerves). A condominium would have been fine too, but 1. there were hardly any available, and 2. they were even more expensive compared to a house. We viewed very few houses, but they were all outrageously overpriced. Then our small detached house with a reasonable price came along, and we even got the bid accepted, despite many competitors – because the sellers were simply nice and wanted to sell to a young family. So we bought it and haven’t regretted it. But originally, we only wanted a larger rental apartment. We didn’t want to commit financially to such an extent, and we also didn’t want the work of a garden and so on. By now, I’m a passionate home gardener, so it works out, but as I said, initially we didn’t want any of that.

I believe that if there were enough family-sized apartments at an affordable price, many families in big cities would still choose to rent. Or buy condominiums. Not everyone needs a house, and not everyone wants one.

Tassimat schrieb:
Wouldn’t a seller want to get the highest possible price, unless the property stays within the family?

One would think so, but the concept of homo economicus seems (fortunately) not to be as widespread as economics would like to suggest.

I share the experience of @Nordlys, especially older sellers tend to care more about the buyer than the money. Moreover, they often already benefit financially quite well from a “fair” price. Whether they get the current maximum market price or the same amount the neighbor sold for three years ago, in almost every case the house is worth much more today than “back then,” and most are more than happy with this increase in value.

It’s also important to consider the already mentioned fact that in popular areas, much (if not most) sales happen through personal contacts, and in this context, no one really wants to appear overly greedy or, conversely, stingy.

In less sought-after areas, it still remains difficult to sell a house these days, so asking for a higher price simply doesn’t work.

In extreme cases, it might be different, but cities like Munich or Stuttgart are not representative of the average single-family home owner in Germany.

Tassimat schrieb:
I’d like to jump in here— is that really the case? Wouldn’t a seller generally want to get the highest possible price, unless selling within the family? That would mean using an agent and/or placing an ad in a weekly newspaper or online platform.

Many people don’t want to deal with the organizational effort involved or the influx of viewings, and especially wish for discretion—particularly when selling due to a separation. They don’t want their house listed online. Therefore, the intention to sell is initially shared only within a trusted circle (family, neighbors, workplace, sports club, etc.), and someone almost always knows someone who is currently looking. If the offer matches what the seller envisions, the property never actually goes on the market. In my experience, the smaller and more close-knit the community, the more common this approach. In some nearby towns, I haven’t even heard or read about a single sale in five years. It all happens quietly, over the garden fence.

Dr Hix schrieb:

In extreme locations, the situation is probably different, but Munich or Stuttgart are not the standard for the average single-family home owner in Germany.

More and more areas are turning into "extreme locations." A terraced house built in 2001 for 350,000 DM now achieves 450,000 € in the commuter belt around Düsseldorf. The increase in property value does not reflect wage growth. Münsterland, Freiburg, Augsburg, Nuremberg, Hanover—no matter where you look, this discrepancy is widespread and concerning.

We have also experienced that (older) sellers are mainly concerned about what will happen to the house/property. One seller told us that he did not place an obituary in the newspaper in order to avoid inquiries from potential buyers. The neighbors were already eyeing the property to expand their gardens. In this respect, a lot of transactions really happen off the record.

Thierse schrieb:
But there are also many people who are not handy at all and need an expensive tradesperson for almost everything. Or simply don’t have the time or willingness to take care of their home even on weekends. This should not be underestimated. And more and more of these people are being forced to build due to market developments. Because it can sometimes be an economic option. At least initially.

Well... if you need a tradesperson for every little thing, you should either have the necessary funds for it or simply not own your own home... whether it’s a purchased house, a newly built house, or a condominium (apartment / flat)... no matter how much the market seems to be forcing you. In that case, renting is basically the only option.