Construction costs are currently skyrocketing

Then it just has to be something else, yesterday at Hornbach 60x60 porcelain tiles for 28 euros per square meter. So it is definitely still possible to get it cheap, but people have forgotten to use alternatives and accept the smallest compromises. Although I see no compromise with terrace tiles. Maybe the inflation we are currently experiencing is not so bad after all and we will change our excessive consumption even if it is difficult. Prestige is not everything.

It was only about the topic of construction costs skyrocketing because I stumbled upon it yesterday. The price increase is really severe. Not that I can’t afford my terrace.

That is not quite right. I am quite pragmatic about it. If you have the dream of owning a house, but it’s not possible in the area, then you should look for another area. Germany is very large and there are many places where you can build very well and still at moderate prices. Staying put in Munich now and complaining that you can no longer build there is a bit "narrow-minded".

Not everyone can do that! Depending on the profession, you hardly have any choice! For example, I have a profession for which there are very few jobs in Germany. So I really have no choice about where I want to live. In any case, it’s one of the expensive big cities. The only option is to move outside or next to the commuter belt, where prices are more bearable. As a single mother, that was naturally no option for me for a long time. The distances have to be short.

Then they must be different ones, yesterday at Hornbach 60x60 porcelain stoneware tiles for 28 euros per m2. So it is definitely still cheap, but people have forgotten how to use alternatives and accept the smallest compromises. Although I don't see any compromises with patio slabs.

You are basically right. But with us, for example, the contract essentially said: "Tiles chosen by the client, up to 25 euros/m2 and max. 30x60 cm." So now the tiler is fixed by the general contractor and he works with exactly one exhibitor. And that exhibitor doesn’t have Hornbach prices.... (I would really like to know what our tiles from back then would cost nowadays.)

And you have such contract situations by the dozen. Period.

Not everyone can do that! Depending on the profession, you really don’t have much choice! For example, I have a job for which there are very few positions in Germany. So I don’t really have a choice where I want to live. In any case, it’s one of the expensive big cities

Apparently, you chose it that way. I initially also had a somewhat exotic career wish (paper engineer), but it was quickly made clear to me how limited the job market is. Instead, I then decided on general electrical engineering; there are practically positions available in every district.

Well, that may not be optimal for the affected family, but it is not terrible. And a family does not fail just because they cannot afford homeownership in their current desired location. Life is about compromises. If you live in an expensive area, it almost always has many advantages; it is expensive for a reason. If the places are cheap, there are reasons for that as well. Everyone has to weigh for themselves what is more important. If someone prefers to do everything by car anyway, they can live 20-30 km out of the way. But if you get around by bike and the family has a full week, it is probably more practical to live closer to the center. Then you only have rental apartments. I understand your situation, but you should not put yourself in a victim role or let friends, acquaintances, or society pressure you about what an adequate family home should be. Kids don’t really care if they share a small room two or three to a room or if everyone has their own wing on a park property. What matters more is that they get time, boundaries, and affection.

Earlier you mentioned the social divide, and in that context, I do find it quite serious. And yes, I know not everyone can or wants to afford homeownership. But the current overall situation doesn’t even allow those who previously could have to do so anymore, since we now have rising interest rates (I know they were higher before) and very high prices. However, I was more referring to the lack of alternatives here. I have only described the situation in my city, where new constructions mostly do not meet the real needs of families with several children. The suburbs here extend sometimes over 40 km into the surroundings. That is simply an unpleasant fact. Of course, compromises often must be made in the housing situation. I have been doing that for many years, but I do not feel like a victim! I had the luxury of centrality and short distances between work, school, daycare, etc. Now the kids are older and I would also like to have my own room, especially because of home office. And that is simply not so easy here. Therefore, we have now looked for something outside (40 km away). That would not have been feasible years ago as a single parent with a full-time job and small children without grandparents nearby (keyword: child has a fever, is vomiting, needs to be picked up quickly, doctor appointments, etc.). And I am sure I am not an isolated case :)

At the moment, many craft businesses also just want to earn some extra money again. The motto is: If everything gets more expensive, so can I. Offers from November, which were only updated again in March because the client couldn’t decide before, are increased by 20%. And mind you, this does not concern material costs or labor costs that are passed on! The specific case now was a heating technician who was supposed to replace the gas boiler with a new one. Without solar thermal, without frills. Besides the costs for the boiler, he also increased the costs for installation, filling, pressure testing, etc. – in the end, almost every position was increased by about 20%. Simply because he can. This wasn’t with me personally, but I have seen both offers. Some might say that’s the market, but others could also call it predatory extortion because the customer now has little to no choice – most only serve existing customers.
Regarding real estate prices, we now also see that many private sellers, but also agents, simply demand absurd prices for existing properties – but again, these do not sell or only sell after a longer time. Since we have recently looked at some houses ourselves, it is noticeable here too that not every piece of junk sells at any price anymore. Especially buildings with a high renovation need.
Due to the current situation in construction and rising interest rates, banks have also become cautious. Financing has now fallen through twice for a property in the neighborhood because the bank said it is worth significantly less and the equity share is too low to make up for it. On the other hand, move-in ready single-family homes without renovation backlog still sell like hotcakes, since buyers have to pay high prices but at least energy costs are manageable and there are no risks and uncertainties regarding renovations. – At least that was the statement of a friend who is a real estate agent last week. People are now increasingly looking for security when buying because renovations and new construction are harder to plan.