Rents in Frankfurt are rising as dynamically as prices and are similar to the
housing shortage in terms of elasticity.
The creation of new housing is barely
keeping pace with demand even today as the trend in the housing shortage
demonstrates. The greater the Brexit effect, and the more successful Frankfurt
is in attracting British companies, employees and expats, the less equipped
tradition housing policy will be to master these additional challenges. Following
several years of planning, it took more than a decade to develop the
Frankfurt’s politicians and decision-makers would thus be well
advised to come up with a concept in the coming months on how they intend to
reduce the existing housing shortage. In particular, it should show how, by
successfully attracting companies, and therefore new residents to Frankfurt, its
self-generated additional demand for housing will be addressed.