Construction costs are currently skyrocketing

What you don’t see, but which is at least a massive problem here, are the apartments that simply are no longer rented out.

Here a house of 85m2, 3 rooms in Berlin is vacant, 11000Kwh gas consumption per year, the owner would have to invest about 100,000 €, does not pay off, stays vacant.

Full agreement on the absurdly high construction costs. In the past (until 2019) you could build for €3000 per m2 (including land) and rent out for €11-12 cold. The return was still reasonable then, also due to historically low interest rates. When it reached €4000 per m2 (including land) in 2021, many still built because of the low interest rates, but could still only get a maximum of €13 cold per m2 in normal locations. And now, with construction costs of €5000 per m2 (including land) and 4% interest, no profit-oriented company can afford to build anymore. You would really have to charge between €18-20 cold per m2 to rent out your apartments even in small town locations. No profit-oriented construction company can afford that anymore. People simply cannot afford rent that high anymore. New rental housing construction for the free market has almost completely come to a standstill. This year, all projects from 2021 will still be completed. But from 2024/2025 practically almost no new apartments will be completed anymore. Then the crisis will really begin.

People, just use the ignore button.

Then it would be boring here.. or when was the last floor plan discussed here?

In the end, you are stifling the demand for single-family homes. Especially living alone is a major reason for building. About 2/3 of all new apartments in Germany are single-family homes (meaning: one apartment in the house

Or simply a 2 KfW loan with low interest rates and the granny flats start to sprout. We saw that this works 10 years ago. And yes, we have a house with a granny flat already with 2 entrances on the slope. Okay, mother-in-law lives here, but that freed up her apartment.

I think you are the exception. When I look at what has been constructed as "Einliegerwohnungen" in the floor plan threads here... the term cell-like apartment is still flattering. It’s also clear, if you invest too much in the secondary flat, the subsidy is used up again.

The issue is not: There is a lack of apartments. The issue is: There is a lack of apartments in the right locations and with the right qualities.

For example, in the Ruhr area, reasonable apartments are desperately sought after. There are still moderate prices here (rents of 5-8€ for existing stock are normal). However, about 5% are vacant on average. That is about 150,000 apartments that could be occupied immediately. Mostly, however, with simple quality.

There are even more vacant apartments and houses outside the metropolitan areas in the countryside. Everyone is flocking to the cities, where nothing works.

Just to throw a few numbers into the room to show that overall we have a surplus of living space in Germany (source empirica): - In all of Germany, about 1.7 million (yes, the number is correct – I did not misspell it) apartments are vacant - About 900,000 of these are old and dilapidated (maybe something can be done with replacement new construction?) - About 800,000 of these could be occupied immediately

Maybe we should simply make the countryside and rural communities more livable again? That should be easier (also thanks to home office) and above all much, much cheaper than promoting high-priced new construction with billions of euros in state gifts.

Example that I currently have on the table: - New construction in a metropolis - Single and business apartments (25-35 sqm), a total of around 300 units - Rents between 23 and 25€ per sqm (for that you only get a living toilet and a kitchenette) - With total costs of €60 million, there are a modest €32 million in KfW subsidies ==> what a waste of taxpayer money...