The high construction prices keep coming up here again and again. Not that I wouldn’t complain about it too, but one should also put it into some perspective.
Just something to think about, hypothetical case:
500,000€ total costs with 150,000€ equity, ergo 350,000€ financing requirement.
At, say, 1.5% interest rate and 3% initial repayment, that results in a monthly installment of about 1,300€.
Everything was better in the past and real estate was cheaper...
So... 10 years ago? I can say that by chance, because one of my interest rate fixations is expiring, the rate was 4.1%.
Now anyone can sit down and calculate backwards. To end up with a similar term and installment, the property would have to be 100,000€ cheaper.
Then we would be at 400,000€ instead of 500,000€. Inflation aside.
But that would still mean the overall total expense ends up being the same in both cases.
Maybe a substantial part is made up of the shift from falling external capital interest rates to rising construction prices. Added to that is the normal effect of inflation and an energy saving ordinance that no longer allows building like 10 years ago plus significantly higher desired “standards”...
...just something to think about...
But that doesn’t change the issue of scarcity, meaning that even those who want to and can, have a hard time.