The Germans keep their own four walls sacred.
This is not affected by higher construction interest and costs.
The Association of Sparda Banks, which are firmly anchored in construction financing, are now reporting an unbroken high level of interest in home ownership among customers.
But after many years of unbridled price increases, the real estate dream in the metropolises and most large cities can hardly be financed anymore, not only for normal earners.
It is not good news for them if a further rise in prices is not to be expected with rising interest rates.
Because real estate prices are likely to remain at the high level with the crucial difference that construction interest has also increased.
The negative interest rate policy of the European Central Bank (ECB) has triggered asset price inflation in recent years.
The development on the German real estate market reflects this impressively.
One of the long-term consequences of the extremely expansive monetary policy is that home ownership has become utopian for broad sections of the population in this country.
The acquisition of real estate plays an important role in private wealth accumulation and thus in old-age provision.
A central bank that feels committed to financial stability in addition to price stability should also take this into account – and not just the yields on Italian government bonds.