Does the real estate market increasingly force more families to build?

For the purchase of real estate, an income must still be present that is significantly above the median. Otherwise, it won't work. If you now check where the median is located, you will realize how many people simply are not able to afford something of their own. This affects more than 65% of all households, so it is hardly worth mentioning.

We have had this discussion several times already. The middle class ranges from this to that and is not only represented by the median. I do not mean a chain but a one-person business.

Well, from what you hear. Over the weekend, there was a rather large article in the daily newspaper at our place: a hairdresser chain had to close 3 branches last year because they couldn't find people, even though they offer 2300€ gross + 20-30€ tips per day for a 40-hour week – that makes about 2000€ net. I know quite a few highly qualified people who don't earn that much...

If a hairdresser including tips reaches 2000€ net, then they belong to the middle class, even above the median for singles. All good

Well, from what you hear. Over the weekend, there was a fairly large article in the daily newspaper: Hair salon chain had to close 3 branches last year because they couldn’t find people, even though they offer €2300 gross for a 40-hour week + €20-30 tip per day – that’s about €2000 net. I know quite a few highly qualified people who don’t earn that much...

Well, in our town, back then the hairdresser put up posters saying that they are so nice to their employees and already pay minimum wage a few months before the legal obligation. They asked for understanding for the price increase necessary for these social reasons. It’s all a matter of perspective

For many, the standard of living is simply too high. There have to be great photos from Asia, etc. 2-3 times a year. Then cost drivers are technology. Internet, mobile phones, computers, tablets, consoles, etc. Many between 20-35 have all of that or at least a few. Additionally, cars cost more due to technology, and many lease a car for 200-400€ monthly instead of buying a decent car for 6000€-7000€ that would last another 10 years.
Then there are some gap years abroad and years for relaxation.

All of this was not so extreme in the past. Then it continues with the house. Energy standards that drive up the price, etc.
I see the consumption behavior as more of a problem than the prices. Sure, maybe luck and connections also play a role, but equally discipline. I myself wasted my money endlessly after training. Immediately got a new car and so on. You only live once, after all. But when it came to homeownership, compromises had to be made.
If children are to come, then one must save again beforehand and live off the savings for 1-2 years until the partner goes full-time again.

If interest rates should rise again at some point, prices will fall and in the end, one will still be paying a rate between 25%-40% of income.

Many also say that money is more sensibly invested elsewhere... Maybe so, but how many have any idea about the stock market or similar? I, for example, have absolutely none. I also see our house as an investment... If I pay 200-400€ less rent, then I wouldn’t invest that money elsewhere to multiply it, but rather get myself a nicer car or book a more expensive vacation. As it is now, "I just save less," but I save.

There would need to be a paradigm shift in Germany towards "ownership is good, everyone should have it," like in DK, SE, NL, or even GB and IRl. How does that work? Property acquisition tax for owner-occupied properties gone. In DK you can deduct the interest on real estate loans from your income tax. That really helps. Whoever pays off a house effectively hardly pays any taxes anymore. The municipalities designate preferred land, everyone does that. Why? Whoever attracts a solvent new citizen really benefits because the city treasurer receives more per new citizen than here. Copenhagen prefers to finance itself through the also very high indirect taxes, VAT, sugar tax, liquor tax, etc. But speculation and accumulation are rigorously prevented. Whoever does not build loses the land again. Whoever wants a second home by the sea must go to a summer house area; if they do that in a normal single-family house neighborhood, they will be expropriated again. The rules there are quite strict and they enforce them. They also build more simply. Not worse insulated and such, but rather smaller and above all more industrialized; a Danish house off the rack is finished, kitchen included, painted, everything done. For that, less individual; as it is, that's how it is at first. -- What benefits them, however: they are much less per square kilometer. That helps enormously to keep the price under control. Except for Copenhagen and Aarhus, there are almost no metropolitan areas. Karsten

"...Many also say that money is better invested differently.. Maybe, but how many understand the stock market or similar? I, for example, not at all...." This is really no rocket science. Monthly ETF savings plans on a broadly diversified index and/or dividend funds and that's it. This way you take all the ups and downs of the stock market and receive a long-term return of 6-8 percent per year. Without stress and hurry.