German New Home Prices Rise to Record on Construction Slump
Prices for new homes in Germany rose to a record in May as housing shortages drive demand, underscoring the urgency facing Chancellor Friedrich Merz’s government to make good on a pledge to boost residential construction.
Compared to the previous year, costs for buying new-build houses and apartments increased by around 2% last month, according to data published by real estate financing platform Europace. Prices for existing properties rose to their highest level since October 2022.