Construction costs are currently skyrocketing

2021-07-09 22:45:24

There is an article in the NZZ today about the housing situation. It notes a shift in financing: fewer people are building based on their income, but more based on their assets. Overall, building is becoming possible for fewer and fewer people (apparently except for a few spots in Ticino). Similar situation as here, an interesting perspective from the Swiss.

Basically summarizes exactly what has already been urgently discussed and suspected here.

The builder of the future will no longer inherit a debt-free property. I think it will develop in this direction so that the building volume remains constant or continues to increase steadily.

2021-07-09 22:47:06

New figures from the Federal Statistical Office.

6.4% still sounds quite manageable. However, I wonder how the increase comes about. Here, numbers beyond 10% are being reported. By the way, I can also sing a (complaint) song about that from my own experience…

2021-07-09 23:23:34

Material is just one side of the coin. It depends on the trade. For some, the price is driven massively by the material (e.g., insulating facades), for others by the labor (painters). Several factors come together. Besides increased material prices, in my opinion, the defensive offers are increasing. Property owners are under pressure and pay "everything," as long as it gets finished soon. (Good) craftsmen are rare. Contrary to some statements here, there are actually many people who can afford it, not least because of the low interest rates. And I say it very clearly, the baby boomers are slowly reaching an age where cancer/heart disease and the like begin to strike (I unfortunately experience this myself). This generation has earned good money, so an inheritance may be imminent.

2021-07-10 08:05:40

If my suspicion is correct that we are currently experiencing a kind of stress test for our supply chains, prices will go down a bit again in 4-6 months. But no one should rely on my gloomy crystal ball intuition.

That possibly applies to completely intra-European supply chains. Everything involving foreign trade will likely "suffer" from significantly higher freight rates well into next year.

2021-07-10 08:51:35

Material is just one side of the coin. It depends on the trade. In some cases, the price is driven massively by the material (e.g. insulating the facade), in others by the labor (painter).

The inflation rate from DeStatis is an overall rate, so material and wages are already included, right?

2021-07-10 09:26:21

Material is just one side of the coin. It depends on the trade. For some, the price is massively determined by the material (e.g. insulating a facade), for others by the labor (painters). Several factors come together. Besides increased material prices, in my opinion defensive offers are increasing. Builders are under pressure and pay "anything", as long as it gets finished soon. (Good) craftsmen are scarce. Contrary to some statements here, there are indeed many people who can afford this, not least because of the low interest rates. And I say it clearly, the baby boomers are slowly reaching an age where cancer/heart disease and the like begin to take their toll (unfortunately, I am experiencing this myself). This generation has earned good money, so an inheritance may be imminent.

I can only confirm that from our environment. The largest portion of potential inheritance consists of real estate. Due to the sharply increased prices in metropolitan areas, almost every property owner here inherits a seven-figure sum. There is enough wealth here in Germany. But that is rarely built up as an employee...

Construction costs are currently skyrocketing

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