ECB Sees Rising Risk That Housing Bubble Will Burst

ECB Sees Rising Risk That Housing Bubble Will Burst
A view of rue Cremieux, a street lined with colorful, terraced homes, located in the 12th district of Paris, on Aug. 29, 2014. Charles Platiau/Reuters
Reuters
Updated:

FRANKFURT—The eurozone housing market is heating up, increasing the chances of a correction in both the residential and commercial segments, the European Central Bank said in a stability report on Wednesday.

With families building up savings during pandemic and increasingly working from home, demand for property is on the rise, pushing house price growth to over 7 percent, its fastest rate since 2005.