Construction costs are currently skyrocketing

Many are currently abandoning their construction projects due to rising interest rates and various crises. Construction companies are losing orders. However, if I look at the [Erdgaspreis] right now, it is plummeting and has long fallen below the pre-crisis level. The crude oil price is below that of 2011. The same goes for wood prices. This should gradually be noticeable in the material market, and thus in the house construction costs. Or am I overlooking something?

I also believe that the current peak price level has been reached and will not rise any further. I consider it impossible that construction prices will decrease overall, since wages will also increase significantly in the coming years. However, because wages are now rising quickly and construction prices only increase by 2% per year, in my estimation building will become more affordable again in 3-4 years compared to today. The still high house and construction prices then will not be as problematic with higher wages. Provided that interest rates do not rise further.

Not only the wages.. Daimler pays record bonus. And that despite short-time work in 2022. I have many acquaintances and friends who work there, on the assembly line you earn 70,000-80,000 euros gross. Of course, that is not a reference but they are doing well. And [igm] negotiates 8% over 2 years and back payments etc..

Provided the interest rates do not rise any further.

Here you can find the answer from the ECB.

Of course, I am monitoring the further development. If the costs get too out of control, the project will be stopped before implementation. Now I am waiting for the first offers and how the contractors will justify their prices.

And that even though short-time work was implemented in 2022.

Not although...because. In our society, the understanding has been lost that one usually has to bear risks oneself, especially if one is economically capable of doing so. Whether it is the company with a year of poor capacity utilization (regardless of the question of whether one did not cause this oneself through complex supply chains) or the citizen at the gas station, the heating, and so on. From all sides, the state is called upon, which of course then gladly throws money at the problems and finances it through debt. Who can seriously still be surprised about inflation?