Munich’s very dynamic labour market
Munich’s very dynamic labour market is fuelling demand for housing as well.
Total employment growth amounted to more than 3% in 2017, and during the
cycle as a whole, employment increased by a total of 22%, i.e. Quite strongly in
comparison to other cities. In addition, unemployment is quite low, at 4.3%
overall; the rate among foreigners amounts to 8.0%1 and youth unemployment
comes in at 2.7%).
Moreover, a relatively high share of all employees in Munich
has obtained a university degree. According to the Federal Employment
Agency, university graduates made up 32% of all regular employees who are
subject to social security contributions. This is the highest share of all German
metropolitan areas and the second-highest in Germany as a whole. Based on
the existing housing shortages registered, Empirica calculated a vacancy rate of
0.2% for the end of 2015. By now, the rate looks set to be zero and price
pressures are likely to have increased further. Office vacancies are another
indicator of the shortage of available space in Munich. Since 2013, the office
vacancy rate has successively declined from 7.2% to less than 2%. In other
metropolitan areas (A cities), the rate is c. 5%.
EU Forecast
euf:ba.18.j:152/nws-01