Vulnerabilities in the residential real estate sectors of the EEA countries

According to the European Systemic Risk Bord report of February 2022 on vulnerabilities in the residential real estate sectors of the European Economic Area countries, factors including strict urban planning, high quality standards required for new constructions, inefficient issuance of building permits and labour shortages are further limiting the supply of housing, leading to unprecedented increases in housing prices. Moreover, the report identifies rental market regulation, for example rent controls, as a major cause of the inelasticity in the supply of owner-occupied housing. Germany is cited as one of the countries with strict rental market regulation. 

Please find the report here.