Situation in Germany: House prices are going down the last few months, but much more slowly than they consistently rose during the preceding 15 years. At the same time interest has sharply risen.

Compared to prices there's a much bigger decrease in new construction, which I'd interpret as people increasingly not pursuing houses and instead piling onto the rent market. Urban/suburban/"sprawl" houses were basically a DI(preferably-NK-and-wealthy-parents-chipping-in) and beyond thing before, I'd suspect houses will continue to shrink while drifting even further up the income distribution and everyone else must rent for life - at an average rent/income ratio of around one third which has only ever been going up, and is of course much higher for non-DI households.

Home ownership rate has always been falling and continues to do so (fell below 50 % in 2022). It'll get a lot lower when boomers start leaving their houses (feet first most likely), because baby boomers have far high home ownership rate than following generations. And with recent changes to the way houses are legally valuated and inheritance taxation I'd suspect many kids of baby boomers can't actually afford to inherit their parents houses and will have to sell.

I dunno where this is supposed to converge to. Everyone renting at >50 % of net income (which is already not at all uncommon, especially for singles in cities) from huge housing companies?