The problem is, the average house price is a bit misguiding. The number might be correct over the total of Germany, but you won't be able to find a house at the

The problem is, the average house price is a bit misguiding. The number might be correct over the total of Germany, but you won't be able to find a house at the average price near Munic for example. People with an average job in those regions have zero chance of buying a house. Land might be somewhat scarce, but that isn't the huge cost driving point. The problem is the process by which land is assigned for building - there is a lot of land which just cannot be used for building. New building areas are sometimes opened, but always trailing the demand, keeping the price up. Also, the density of new buildings could be higher. It is grotesqe that in an area with lacking housing new single homes get approved. Also, why are cities allowed to approve additional office buildings without ensuring that the housing capacity is extended for all those new office workers? Easy way to enforce that would be mixed use buildings, where you have a comparable work and living capacity.