Why Eurozone House Prices Are Stalling Despite Strong Economy

Episode 41 of The European Economy Podcast with Fexingo examines a puzzle: Eurozone GDP is growing, unemployment is falling, yet house prices in several major economies are flat to declining. Lucas and Luna drill into the specific case of Germany, where prices have fallen 2.3% year-over-year according to latest data, while France and Italy show similar stagnation. They explore the role of ECB's tight monetary policy, a surge in new construction completions in 2025-2026, and changing demographics in cities like Berlin and Paris. The conversation also touches on the divergence between commercial real estate and residential markets, and why this matters for European household wealth. With real GDP growth at 1.6% annualised and consumer confidence recovering, the soft housing market is a head-scratcher. Are we seeing a structural shift away from homeownership in Europe? Lucas and Luna debate the evidence and what it means for the broader economy. #Eurozone #HousePrices #GermanHousing #ECB #RealEstate #EuropeanEconomy #GDPGrowth #Inflation #Bundesbank #HousingMarket #BerlinProperty #ParisProperty #MonetaryPolicy #Demographics #Construction #Homeownership #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo