Construction costs are currently skyrocketing

The question I ask myself is why I should buy a house from 1960 / 1970 / 1980 if I have to do a complete renovation anyway. Then I can also focus on aesthetics, possibly higher ceilings, a nice existing plot of land, and look at houses from 1930. From today’s perspective, I find houses from 1970 / 1980 significantly less attractive.

High prices are still demanded for a house from around the 70s. You also have to renovate because they are really bad energetically. The (in my view) poor room layout comes for free. Then you almost end up with the price of a new build including land (at least here in the countryside). The prices are still off-putting.

Because from 2024 onwards, pure gas heaters are no longer allowed to be installed and pellet heaters are not much cheaper either.

The ban was recently overturned.

You probably need a 65% share of renewable energy, but a gas heating ban itself was withdrawn again due to impracticality.

I am also observing the used real estate market here. I would say there are a few more listings on the portals, but the supply is still manageable and also expensive. The properties stay on the portals longer than before. But we are not talking about months, just a few weeks. So far, the big price drop seems to be absent. We ourselves have an old building, and I would not sell it cheaply either. Because I don't have to. There are hardly any plots for new construction, if any, then far outside; new construction is very time-consuming and hardly affordable anymore, even for very well-paid people. From the perspective of an old building owner, I also see no necessity to sell anything below value.

I am also watching the used real estate market here. I would say a few more listings are appearing on the portals, but the supply is still manageable and also high-priced. The properties stay on the portals longer than before. But we’re not talking about months, rather a few weeks. So far, the big price plunge seems to be absent.

I had hoped for more as a seeker as well. But in the end, many write off new builds, and of course that keeps the existing stock priced high. I see it similarly to you.

A few impressions from the private environment regarding the current situation:

Hardware store: The situation has long since eased, almost everything is in stock or available at very short notice (contrary to the fear of some here in the forum that due to the Ukraine war there would soon be no building materials at all). Prices for building materials have apparently reached a plateau for the time being, unfortunately at a high level.

Architect: Prices for new buildings are currently still rising unchecked – craftsman prices play a major role here. The workload of the companies is apparently very high due to renovations, which is why prices for new construction projects are not falling. He had expected falling prices but has been proven wrong. For today’s construction prices for a single-family house, he would have built villas 10 years ago. He thinks that the dynamics of price increases will slowly come to an end in 2023 – but new buildings will for the foreseeable future only be possible for the top 5 %, according to his statement.

Roofer: New construction business has completely collapsed for almost a year – however, there is an incredible volume of roof renovations. The KfW funding for individual measures and the high energy prices apparently stimulate the business a lot.

The market therefore really seems to be shifting strongly towards stock renovation (which I personally do not find bad).