Construction costs are currently skyrocketing

That is viewed very undifferentiated. In rural areas, the homeownership rate is around 60-65% depending on the federal state. In Berlin, it is only around 17%. In the other city-states the situation is similar and also in the big cities. And these have historically been extremely heavily destroyed. The concentration of wealth and thus the ability to acquire real estate cements the situation. Additionally, the historically very hesitant lending compared to other countries... the tendency not to move much, but to "build only once in a lifetime"... there are so many factors. To reduce the whole thing to strong tenant rights and high additional costs is really too simplistic.

That is not viewed undifferentiated. That is just a brief summary of what the main factors are. I do not have a collection of studies at hand now but from memory I have read these things several times in articles and studies.

The extreme differences between city and countryside are rather natural. Without knowing the numbers, I would claim that other countries have similar relationships between city and countryside.

I also remember the factor of destruction in World War II. The factor here is that after World War II a lot was invested in building rental apartments and therefore relatively many good rental apartments were available.

But that does not change the other factors. And no one said that those are the only factors, just the main factors. That is, by the way, also the result of several studies from recent years, as mentioned above.

One small correction: I was not talking about the additional costs in case you meant me with that, but about building regulations. However, the additional costs also play a role.

The additional costs effectively prevent one from temporarily buying a house somewhere and then buying a new house. It is well known that these are up to 10%, which simply vanish into thin air. And no, increases in property values are not a natural constant.

100% price increase for steel. I have currently heard from half a dozen prospective builders who will cancel their projects. No wonder. It’s absolutely no fun anymore in this country.

But shouldn’t the cancellations by the prospective builders slowly lead to a stagnation or decrease in prices? Our construction company now only builds houses that at least don’t result in a loss. Many were canceled because the application and approval time took more than a year, and thus they are no longer covered by the fixed price guarantee. Additional costs of 50-100k can hardly be afforded by anyone. Especially not when you don’t even know if that will be enough…..

Many were canceled because the application and approval process took more than a year and thus they are no longer covered by the fixed price guarantee.

I have recently heard from half a dozen prospective builders who will cancel their projects.

Can projects be canceled that easily? I thought that then high payments (to contractors, banks, ...?) have to be made, for which one then receives nothing in return.

I have no idea. I think the general contractor is happy because he hardly gets any material on the market anyway and can at least finish building the other houses. With the bank, you will definitely have to pay a prepayment penalty :/

The reason we have such a low home ownership rate is also due to the strongest tenant protection laws in the world.

I cannot judge that. I have no idea why anyone would give up home ownership just because they can rely on the strongest tenant protection laws in return.

And does Switzerland have a problem because of that?

I am not familiar with living in Switzerland. But since Switzerland is also considered a wealthy country, similar to Germany, I find that inappropriate.

Why does that frustrate you? Do you own property?

It frustrates me because I believe that in a "rich" country more citizens should own homes. Yes, I have owned and do own property, but I think of the many fellow citizens who are not granted that privilege, even though they work really, really hard. And that ownership rates (except in Switzerland) sometimes reach almost 100% in supposedly poorer countries, I find disappointing for this country.

Our requirements and regulations further increase construction costs…

I share that opinion.

Partly simply the smallest apartments without central heating, single glazing, etc.

The weather conditions are certainly one of the reasons why building is so expensive in Germany.


@all:
I did not want to offend or criticize anyone with my comment on the low home ownership rate, I only notice an actual or perceived imbalance which I do not find pleasing.