Private Net Worth in Eastern and Western Germany Only Converging Slowly

Abstract

Very nearly 25 years after the fall of the Wall, households in eastern Germany have average assets of 67,400 euros which is less than half of their counterparts in western Germany with average assets of 153,200 euros. In both parts of the country, real estate ownership is quantitatively the most important asset type. Although the share of owner-occupiers has increased significantly in both regions since 1990, only one-third of all households in eastern Germany are owner occupied whereas the corresponding proportion in the west is almost half. Further, the market value of the real estate owned in eastern Germany is only half of that in the west. There has, however, been a significant convergence both in terms of average living space and property furnishings since the fall of the Wall.