Yes, I heard about that. Also in regard of property prices in the US. From what I know, buying a house is much more common in the US than it is in Germany. But the price bubble for property, plus the deteriorating income value in a big part of the population, makes it impossible for many to handle the neccessary mortgage payments. Resulting in foreclosures and bancrupted families.
I always wonder why people are so eager to live in the big cities. True, there are more jobs, but also much more people looking for a job. And the pay is not really so much better, either, not enough to make up for the higher expenses.
You are viewing a single comment's thread from:
I do not know much about homeownership in Germany. However, in America owning a home is synonymous with obtaining the "American Dream" and home ownership is great. The problem is that the cost of housing has increased a lot more then incomes have. Many people take out mortgages that they can barely afford and if they get layed off or have a major medical issue they can no longer keep up with the payments and lose their house. Also in many small communities the entire economy is based on one thing like a manufacturing plant. If that plant closes the entire towns economy collapses and the houses become worthless. This is a problem you are seeing in many towns across the country.
As far as why people are so eager to live in big cities from my prospective most high paying jobs are located in major cities. The common route people take is to live and work in the city when they are in their 20s and then settle down and move to a surrounding suburb and start a family in their late 20s early 30s. Of course I am only talking about one subset of the population.
Well, also here most people - if not everybody - would like to live in his own house. But due to building regulations, land prices and other factors, it is more expensive to achive that. You can expect the cost for a simple new small house, with almost next to no garden space around it, to about 350.000 Euro upwards. That is simply too much for a family with a average income.
To the big cities: its true that the well paid jobs are mostly there. However, the majority of people who move to the cities have no chance in hell to ever get one of those well paid jobs. They have low paid jobs, for almost the same pay as they get in smaller cities. And yet they have to cope with the higher price level. That doesn't really make sense.
No you're right it does not make
Sense. Yet people do it anyway. I'm sure when they make the move they believe it will better their situation. Unfortunately it doesn't always work out that way