According to a study conducted by the Institute of German Economics (IW Consult), commissioned by the Association of Sparda Banks, the departure of baby boomers from the real estate market in major cities is unlikely to bring much relief to housing market pressures. Florian Rentsch, a board member of the Sparda Banks association, stated that the research indicates that the intense pressure on the housing market in metropolitan areas is not set to subside.
The study found that while the number of elderly owner-occupied households aged 65 and over exceeds the count of younger renter households between 30 and 44-who are considered potential property buyers-in many regions, this potential surplus could exert long-term downward pressure on real estate prices particularly in structurally weak and rural areas. However, the report emphasized that a nationwide wave of sales leading to significantly lower prices is not anticipated.
A critical finding of the research is the frequent misalignment between regional supply and demand. Although numerous older owners reside in many districts, the demand from younger households is heavily concentrated in economically strong large cities. Furthermore, the study points out that even drawing in peripheral or surrounding areas often fails to satisfy the demand originating in the major metropolises.
