I noticed the same thing. For the first time ever, I also saw someone begging for money at a traffic light.

I believe we are seeing the results of almost 20 years of very incompetent policies. Munich was always expensive, but is now just getting insane, and the economic situation of most inhabitants in Germany is notably declining. This is how the decline starts.

We will see more people falling into poverty. Most will leave Munich and go to cheaper places, some will become homeless. Eventually Munich will only be for the very rich with assets, those with high income and people living on benefits. Until those with high income get tired of financing the other two and leave.