Does the real estate market increasingly force more families to build?

Halving the real estate transfer tax, lowering energy standards for new buildings to an affordable level, more social housing, reintroduction of the old homeownership allowance, and tax incentives for property acquisition....

After a few years, prices adjust anyway. Sellers also notice that X thousand euros more are available due to allowances.
The Müller family and 10 other families have similar incomes and calculate how expensive a house can be for them. Because of all the allowances/tax cuts and so on, they now have capital X available. Just like the 10 other families now as well. Properties still sell faster than before at first until prices stabilize accordingly and sellers get even more.

Wealth accumulation is disproportionately encouraged:

Flat tax on capital gains far below income tax.
Interest on rental properties deductible.
Tax-free sale after 10 years.
Deductibility of work after moving in.
Now also child construction allowance

One must not forget that we have such low interest rates partly due to the problematic ECB interest rate policy. At some point, this huge interest rate experiment will backfire. And the taxpayer will foot the bill. The ECB currently owes the Bundesbank around €1,000,000,000,000 through the so-called Target2 balances.

We will still get 2-3 offers from in-house companies. But due to various factors, we will probably take a more expensive rental house (due to the lack of cheaper offers). When the already older children have left the house, one can then consider how to proceed. Foreclosures in a few years might possibly be a cheap option. Many families who are currently only able to build because of the low interest rates will have problems when interest rates rise. Many in our environment still have too low repayment rates and only slowly move into the green zone.

Even if I were to build now, it would take at least 1 year until the shed is finished. It would only be interesting if there is a good offer.

Oh please don't also mix the TARGET balances into the topic. Since this was discovered by a man who considers himself a scientist because he was allowed to run an institute for a long time, which inexplicably is regarded as a scientific institute, there is a very special German view on the subject. This is not shared by the rest of the world and certainly not by the expert community. And it only has something to do with house prices through more than fifty degrees of separation.

So some families who currently can only build at all because of the low interest rates will have problems when interest rates rise. Many around us still have too low repayments and only slowly get into the green zone.

Who forces people to have high remaining debts? Rising interest rates are absolutely no problem until the credit contracts expire!

Who is forcing people into high residual debts? Rising interest rates are zero problem until the credit agreements expire!

But often incomes are too low to afford effective repayment rates. Acquaintances of ours repay with 1 percent. Depending on the interest rate, it takes 40 years to pay off.

As long as the ECB exists, the Target2 issue is just a marginal note. But it becomes interesting in case of problems in the Eurozone. The euro crisis is artificially kept small by the ECB's interest rate policy. Cash-strapped countries like Italy will still cause serious worries. And if Germany's economy also starts to falter, it will become even more interesting.

Often, however, the incomes are too low to afford effective repayment rates. Acquaintances of ours repay at 1 percent. Depending on the interest rate, it takes 40 years to pay off.

1 percent repayment is an unfortunate exception for owner-occupied property and the opposite of "often." Which bank would do that...

If you already generalize from isolated cases and make slogans, then take a look at... hmm... maybe Warren Buffet? Invest a bit wisely and get rich.