The research project analyses the financing strategies of different housing market agents, their changes and underlying determinants, and the corresponding impact on the housing markets. Particularly important is the distinction between short term effects of the current financial market crisis (and general economic crisis) on the one hand and long term trends on the other hand. With the outburst of the financial market crisis and the emerging liquidity shortages of nearly all banks the financing conditions on housing markets became tighter. Due to increasing macroeconomic and balance sheet risks many banks became more cautious in their lending behaviour. Corresponding to a more restrictive valuation of collateral by lenders, the demand for investors’ equity increased. In particular for developers of large housing market projects, facing high vacancy risks, financing conditions deteriorated drastically. Large scale transactions on housing markets are confronted with financing restrictions as well, particularly if they rely on securitization of mortgages or assets. Besides this, also some long term changes are visible in housing finance (partly due to the introduction of Basel II and the increasing European integration of mortgage markets). However, a distinctive analysis for different groups of housing market agents seems necessary, distinguishing in particular:
·     private households as part of housing supply and demand,
·     public housing corporations,
·     private enterprises of different legal status, which are in Germany only for a  minor part are publicly quoted,
·     housing cooperatives, and
·    closed-end real estate funds.
The research project is focusing on the changes of financing conditions, the financing behaviour of different groups of market participants, and their underlying determinants. Of utmost importance is the distinction between short term effects, rooted in the current crisis, and long term trends. Based on these results, the analysis should finally also elaborate on the impact on the housing markets and the consequences for housing policy.

Selected Publications