Construction costs are currently skyrocketing

I often read about Donut villages. My husband and I were looking for exactly that, but we didn't find anything like it on the market. Well, maybe such houses are no longer listed due to a supposed lack of sales success. Our disadvantage in the search was certainly that we didn't live in our desired region beforehand, but about 600km away, so we couldn't just roam through the villages, attend village festivals, and ask around.

Even after our new build, we can imagine renovating an old house if we find a suitable property here in the region where we have now lived for 1.5 years ... we continue to keep our eyes open. :)

I have to say, somehow it makes me sad that your house no longer (?) meets your wishes so much that you are already looking for something new before moving in. But I can only say, renovation is not easy either. And listed building protection even less so :) Think it over carefully :-*

Oh nonsense. The "I'm-24-months-fully-booked-take-it-or-leave-it" pricing strategy is just collapsing. There are still plenty of people willing and able to build (inheritance generation).

Honestly, I don't believe that. The order books are definitely still full for the next 2 years and there is enough wealth in Germany. It’s just becoming increasingly difficult to build "on your own power". More capital is just coming from relatives...

According to the construction industry, 30% of this backlog is already cleared, and 40% want to push forward. With current prices and the current economic situation, hardly any new projects are being initiated in the rental sector, you can already feel that. And even in the marketing of condominiums, the demand was already extremely thin, that will not become more profitable – consequence: less demand.

The inheritance generation as a counter-argument is also a myth – the average builders are around/under 40 according to a financial advisor study. Their parents might be inheriting currently. And those often belonged to larger families, meaning – among the baby boomers, single children were strangely rather unusual, the inheritance is divided. Certainly sums add up, but that is just a drop in the ocean when costs have previously risen by 10% p.a., are now exploding, and interest rates are also rising steeply. Will the next inheritance of €200,000 quickly come along to keep people in the race?

You’ve already seen it here in the forum for a long time – posts now only come from busted KfW dreams. No normal prospective builder with a family income of €4,000 asks anymore whether their project might be viable. It only works now with high equity and high income.

Let’s take here a normal project from the past, already reduced by 20m², so 145–150m² + land. Assumption: €350,000 land, €550,000 construction + ancillary construction costs – and €300,000 equity. With a 20-year fixed interest period, that would today be, at 2.4% interest and 3% repayment, about €2,800 per month.
Assuming the pure loan installment for the house amounts to a maximum of one third of household income, the sample family already needs €8,400 per month here. That would almost certainly be somewhere in the 95th percentile of household incomes and hardly the basis for another boom.

The world is not a panda. More like a donkey. Or a raccoon. No one is talking about a new boom. But it's not like one entrepreneur after another will commit suicide because of insolvency. In recent years, for example, it has been almost impossible to get anyone for smaller contracts. The forum is full of quests with defensive offers. Now entrepreneurs just have to make a bit more effort again to win and keep customers. Maybe that's not the worst thing.

Let's consider a normal project from the past here, already reduced by 20m², so 145-150m² + plot. As an assumption: €350,000 base,

Uh, normal project with €350k base? So about 1,000sqm on average? No. Outside the metropolitan areas, so almost everywhere in Germany, you buy the plot cheaper.

Another good example of construction cost increases for individual products.

I had private contact with my WP supplier today. The Panasonic monoblock is currently 64% more expensive compared to a year ago, but at the moment not available. Similar price increases are also seen with other models.

Uh, a normal project with T€ 350 land? So 1,000sqm on average? No. Outside the metropolitan areas, so almost everywhere in Germany, you buy the land cheaper.

And today you still finance houses outside the metro regions (important difference) for half a million on 80,000€ land? I had now assumed ~700sqm at 450€/sqm. The scenario is "there is no difference", meaning the 400€ from last year is now 450€.

That's not really the crucial point either – you can also calculate 800sqm for 250€ in the medium-sized city. That takes 150,000€ out of the calculation, and the Mustermann family now has to pay 2,100€ per month, which means they probably need an income of 6,300€ monthly. That is still not the median or average if you look at the numbers published today by WSI.