Young Danes buying property in Copenhagen face serious financial consequences. Economist Jesper Rangvid from Copenhagen Business School issued this warning. He fears losses for those who purchased expensive apartments during the past two years.
Copenhagen's housing market ranks among Europe's most expensive. Many young buyers stretched their budgets to enter the market. Now they face potential negative equity if prices decline.
Rangvid specifically worries about recent buyers in the Danish capital. These homeowners could lose money if they need to sell soon. The warning comes as interest rates rise across Europe.
What does this mean for Copenhagen's housing market? The city has seen steady price growth for years. Young buyers often rely on family help or large mortgages.
This situation reflects a broader challenge in Nordic capitals. Stockholm and Oslo face similar affordability issues. Young residents struggle to buy homes in desirable urban areas.
The economist's warning highlights real financial risks. Many young buyers assumed prices would keep rising indefinitely. Now they face the reality that markets can move in both directions.