Construction costs are currently skyrocketing

Three steps are announced this year, target 0.9%. For 2023, 1.6% is announced, in 2024 then 2.1%

Although I wouldn’t rely on that now and that is only the key interest rate, i.e. the short end of the maturities. More interesting for real estate loans is the long end. That is of course influenced by the short end, but more important is that it is currently artificially controlled through bond purchase programs. At the long end, however, the point is that the USA is much more heavily indebted and the FED has also set government financing as a goal. Unlike the ECB, which officially is not allowed to engage in government financing ;)

Prices (construction & purchase) have probably reached almost the maximum – at least broadly speaking. If not, the volume will continue to shrink because no one can afford to build anymore, and because at current prices, investing in housing for rental is unprofitable. The inherited property only helps if you can still sell it. With renovation obligations, it’s all not so simple.

I always think that too.
On the other hand, I see how, in our building area with land prices of €1000/sqm, a childcare worker and a sales assistant as well as a hairdresser together with a car mechanic build a house with 170sqm-190sqm living space plus a basement.
Of course, also with a lot of own work, but still...
Then I think again, there must still be a lot of room to grow.

And we, for example, might not have been able to take on more credit.
But we could have also built only 120sqm instead of 160sqm or had to do without the basement/double garage. For the same price.
That’s also possible, so somehow still room to grow.

It’s really hard to say how it will continue.

I always think that too. On the other hand, I see how in our building area with land prices of 1000€/sqm a childcare worker and a salesman as well as a hairdresser together with a car mechanic build a house with 170sqm-190sqm living space plus a cellar. Of course with a lot of own effort but still.... Then I think again, there must still be a lot of room for improvement.

This discussion has been around here repeatedly since I joined. Probably it will continue for a very long time.;) From professional experience I can say that there are simply very, very many parents, grandparents, etc. who have money and don’t know what to do with it, who have plots or “little pieces” of land that will become building land in the foreseeable future. Since Germans do not have 4 children on average, there is enough left to give as gifts and inherit. And then the car mechanic and the hairdresser can continue to build. Of course not everyone is that lucky, but there wouldn’t be that many plots either if that were the case :p

You don’t seriously believe that building will become cheaper again someday?! But, of course, it can’t get as massively more expensive as in the last 3-5 years. Therefore, I don’t believe in a massive interest rate increase either, because then some lights will go out. (Keine Neubauten mehr und keine Anschlussfinanzierung…);)

That's exactly what I wanted to hear, apparently the price is currently nothing unusual, it just shocked me because I'm not up to date on this. I am still getting an offer for a steel carport and alternatively for a wooden carport.

May I follow up here and ask what came of the offers? How high were the prices? And are the prices mentioned here for a double carport including installation? Can you recommend any specific providers?

You don't seriously believe that building will ever get cheaper again, do you?! But of course, it can't become as massively more expensive as in the last 3-5 years. Therefore, I don't believe in a massive interest rate hike either, because then some lights will go out. (No more new builds and no follow-up financing…);)

Why should there be no more new builds? Follow-up financing will also still be possible – only some won't be able to afford it, those who speculated with 1% repayment and great hope for a future sale. It's already clear that interest rates will rise – the only question is how fast and how high. Even the described moderate increases of 1-2 percentage points bring a completely changed situation. Let's wait and see, it will be exciting.