DIW Weekly Report

Real Estate Market Remains Tense – Rents and Apartment Prices Are Rising

After two years of significant price declines, the German real, estate market is showing signs of slight stabilization. Once, again, building plots and single-family homes have become, slightly cheaper – nominally by one percent compared to, 2024. In 2024, the declines were four and seven percent, respectively. Prices for row houses and apartments, on the other hand, rose slightly by 0.5 percent. Price ...

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German Economy in the Starting Blocks—Global Economy Holds Its Own

The German economy has stabilized in the current year and is looking ahead to a fiscal policy-supported upturn starting next year. Since the fall, an expansion in public demand has been providing important economic impetus. The private sector, on the other hand, has so far been more subdued. Trade policy uncertainties, high production costs, and structural weaknesses are causing particular concern ...

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Heat Monitor 2024: Following the Energy Crisis, Prices for Heating Energy Sources Are Developing Very Differently

In 2024, the heating energy demand of households in Germany remained at a similar level as in 2023. Thus, the heating energy savings achieved during the energy crisis were maintained, as data from real estate service provider ista SE show. Compared to 2023, CO₂ emissions fell by three percent after adjusting for temperature. Although heating energy prices rose on average by only 6.2 percent in 2024, ...

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Mothers’ Living Conditions Shape Health and Early Development, While Refugee Experience Has Little Impact

Around 200,000 children were born to refugees in Germany between 2014 and 2022. This Weekly Report investigates how the health and development of children born in Germany to refugees are affected by their parent’s experience of being a refugee. An analysis using representative data from the Socio-Economic Panel (SOEP) and data from the IAB-BAMFSOEP Survey of Refugees shows that there are no significant ...

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Traditional Attitudes Toward Gender Roles Are Increasing Among Young People in Some Countries

Attitudes toward the roles of women and men in society have become more egalitarian in Germany and most countries around the world since World War II. Recently, however, this process has slowed significantly, even reversing in some places. In most countries, the attitudes of the youngest ten age groups surveyed are hardly any more egalitarian than those of the ten age groups before them. In about a ...

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Parental Influence on Their Children’s Homeownership Remains High, but Declining

Homeownership is far less prevalent in Germany than in most other European countries. This Weekly Report examines the extent to which homeownership in Germany depends on the ownership status of parents and how the association has changed over time. Homeownership rates are significantly lower among younger birth cohorts than among older cohorts. At the same time, intergenerational mobility toward renting ...

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Germany’s Labor Market: Increasingly Service-Oriented and Highly Skilled

The German labor market has undergone profound changes over the last decades. For a long time, the debate on structural change focused on the shift from manufacturing industries to services. This Weekly Report highlights that labor market changes are attributable to three developments: In addition to structural change, i.e., sectoral shifts, key drivers are an occupational shift toward service-related ...

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Basic Pension Recipients Are More Likely to Be Employed than Other Pensioners

With the 2021 introduction of Germany’s basic pension, longterm insured persons with low incomes can receive a supplement to their statutory pension. In 2024, around 1.4 million recipients received an average pension increase of 100 euros as a result. Data from the German Pension Insurance show that women especially benefit from the basic pension supplement. At the same time, it is striking that people ...

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Productivity: East-West Gap Replaced by Urban-Rural Gap

In 1991, the average labor productivity of the then-new federal states (plus West Berlin) only reached nearly half of the total national productivity level. Since then, the average labor productivity of these states has climbed up to nearly 90 percent. However, the ranking of the individual states has barely changed: Hamburg and the southern German states are still at the top, while most eastern German ...

Fiscal Capacity of German Federal States: East-West Gap Narrows, but Rich-Poor Divide Grows

Even now, 35 years after German unification, the economic power and fiscal capacity of the eastern German federal states remain below average. In Germany’s system of fiscal federalism, this leads to substantial financial transfers, a fact that repeatedly triggers political debate. Thereby, the low tax revenue of the economically weak states is also a consequence of the tax system—and by no means a ...

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Narratives on the Distributional Impact of Climate Policy Can Fuel Populism

Populist parties use narratives about social injustice to portray climate policy as elite-driven and socially unjust. This study— based on a survey experiment with some 1,600 participants— examines how three common narratives about the costs associated with climate policy affect populist and climate-populist attitudes. The results show that the narrative highlighting the disproportionate burden on ...