Have construction costs increased so much in the last 2 years?

No matter what job they have later. Without equity, nothing will happen.

Without equity, nothing has ever happened.
Only in the past, grandma and grandpa started paying into a building savings contract at birth, which could then replace the equity.
That investment form even offered returns. That’s over now. Grandma and grandpa today have to open a securities account and buy stocks, but Germans don’t like that again. And the red finance minister also wants to introduce a tax on the only remaining meaningful investment form.

No matter what job they have later. Without equity, nothing happens.

On the contrary: With the interest rates these days, it doesn’t matter whether you have equity or not, borrowing money is super cheap.
But those who don’t manage to save today live a consumption-oriented life: iPhone, Prime, Netflix, Spotify, travel, clothes... the list is long.

And the red Finance Minister also wants to introduce a tax on the only remaining sensible form of investment.

The tax will NOT change anything about wealth conditions. The outrageous thing is only that the middle class is being hit in the pocket and explicitly not the gamblers, investment bankers, etc. Complaining about Scholz is stupid pub talk regarding the topic of property acquisition.

It is quite schizophrenic to realize that the middle class will be burdened (because, for example, there is no allowance) and at the same time not to criticize Scholz! His party membership should be reason enough to ensure that ordinary savers/small investors are not affected. But unfortunately, saving and wealth building in Scholz’s narrow mind is only translated into savings accounts, building society savings contracts, and insurance products. Instead of finally providing financial education and making other investment forms attractive.

In Hessen it’s going up....

current FAZ article

link is no longer allowed to be posted

On the contrary: With the current interest rates, it doesn't matter whether you have equity or not, borrowing money is super cheap. But those who don't manage to save today live a consumption-oriented life: iPhone, Prime, Netflix, Spotify, travel, clothes... the list is long.

Just because the money is super cheap doesn't mean you can build without equity. The super cheap money is offset by the construction prices. Who in their right mind would want to bind themselves to €500k with 110% financing and, for example, a €5k household income? Certainly not me. Possibly, children are supposed to come later, etc. I would have preferred it if the interest rates were high and construction prices low, then at least I could accelerate the repayment through special repayments. For example, €10k special repayments are just a drop in the bucket at the currently asked prices. The last paragraph, as trivial as it seems with the examples, is exactly the bottomless pit where many wonder where the money that should be there at the end of the month has gone.

Statistically, new buildings have become significantly more expensive in the last 40 years when adjusted for inflation and measured against average income. However, this is not only due to the nasty craftsmen, but also because of the construction methods prescribed by the energy saving ordinance and ultimately also due to the increased demands of home builders. The average living space per inhabitant has also increased during the same period.

Personally, I like the currently low financing interest rates over a long period. We have fixed interest rates for the entire term and thus a constant burden over the entire term. Due to tariff increases and step raises, our household income will continuously rise, which makes the percentage burden smaller and smaller. I also find that relaxing. At the same time, we save our "household surpluses" in various risk-diversified forms of investment, all of which offer higher returns than we pay on the loan. So why should I make special repayments?

And even at the time when building was cheaper and interest rates were high, not everything was rosy. But what was different then than today? Despite the supposedly cheap construction costs, not everyone could afford it, especially since banks placed much more value on a reasonable equity ratio back then, which not everyone could prove then as now.

What is supposed to happen in the next few years?

Scenario a: Interest rates and inflation remain the same: Yippee! My salary continues to rise as in recent years and my annuity stays the same anyway.
Scenario b: Interest rates and inflation rise: Yippee! I have endless fixed interest and with higher inflation, I expect higher collective wage agreements and thus a nominally higher salary faster. Also, conservative savings products will then offer higher interest rates again than what we pay on financing.
Scenario c: Interest rates and inflation fall: Yippee! The stock markets continue to rise and bring me a significantly higher return than what I pay on my loan.

Everyone has to decide for themselves what and if they can or want to afford. Financing stretched to the limit is crap, whether interest rates are high and construction costs supposedly low or vice versa. Personally, I see it like in a post above: Even in 30 years, my children will be able to afford home ownership.