Acquiring a primary home remains difficult for many first-time buyers in Germany, even with slightly lower real estate prices. This conclusion stems from a study on regional first-time buyer potential, conducted by the analysis institute Empirica and the state building savings banks, as reported by the “Handelsblatt” (Friday edition).
According to the institute’s “Affordability Barometer” the main obstacle to buying property is insufficient personal capital. In 2025, only about 5.7 percent of renter households aged 30 to 44 could overcome this hurdle on their own. Fifteen years ago, this figure was nearly ten percent.
Restrictions related to income are significantly less stringent. Approximately 39 percent of households could afford the ongoing financing costs. Therefore, the crucial factor is not the monthly payment, but rather the high initial hurdle posed by ancillary purchase costs and the necessary equity. This requirement now averages around 131,000 euros.
Axel Guthmann, the association director for the state building savings banks, commented that while savings have always been the limiting factor in homeownership, the situation has visibly deteriorated over the past decade. He added that the correct political measures are now needed to counteract this trend.
