Why don't construction prices go down?

You can see how out of touch with reality you are. Which skilled worker in the trades earns 4500 euros a month? Unless you work at VW or Daimler. Maybe there.

45k/12 = 3750€ per month ... 4500*12=54k

I am not saying that I am taking the position (I can't judge that at all), but in my studies I cited scientific papers that assume a certain amount of undeclared work is necessary for an economy, as some sectors depend on it. Mentioned here were, among others, the hotel industry, harvest workers, and also the construction industry. Back then (20 years ago) it was already about the "Fortress Europe" and the politically "desired" permeability regarding irregular immigration. Well, that does not concern the poor German craftsman now, but it is perhaps one aspect in the discussion.

You can see how out of touch with the world you are. Which skilled tradesman earns 4500 euros a month? Unless you work at VW or Daimler. Maybe there.

Does your inability with numbers actually come from the time when German schools were not yet “run down”? Your “concrete” answer to my questions was also just abstract nonsense. To summarize: Overbearing is what feels overbearing to you. A rational explanation is not necessary. This attitude is nowadays referred to as “woke,” when one attributes their own feelings exclusively to the environment and then makes corresponding demands on it, instead of starting with oneself even a little bit. So here we have someone who selectively lives by woke principles and twists numbers and facts to preserve this worldview. When these distortions are uncovered, nothing substantial comes back, just a change of subject. Basically, a lot is “argued” based on feelings, as if they already represent facts. The “argument” goes that the felt connections are after all common sense. The idea of one’s own fallibility does not occur, and thus no possibility for self-correction. I find it important to summarize this generally once, so that the few blue fanboys here on the blog know who they’re getting into bed with when making certain decisions. Because is of course right in this respect: He is not alone in this attitude and not even particularly extreme. And it is still obviously wrong.

So we have here someone who selectively lives woke principles and twists numbers and facts to preserve this worldview.

Your "concrete" answer to my questions was just abstract gibberish.

Despite massive inflation in recent years, which certainly affects not only construction and real estate prices but also all other areas, workers have had to endure drastic real wage losses. Of course, there have been wage increases in some economic sectors. However, these have largely evaporated. The crisis in construction currently does not invite wage increases in the construction industry either.

In addition, we have seen devastating interest rate hikes that have severely worsened the situation, especially in the area of high-priced goods but also in construction.

And despite millions of citizen’s income recipients and refugees, there is still a massive labor shortage. I do not mean the shortage of highly qualified international specialists. The labor shortage refers to all sectors and can be felt most strongly in the low-wage sector.

And I do wonder where this labor shortage really comes from. Is it really due to demographics? Where have the workers gone? Why do only about 80 percent of Ukrainian refugees work in other countries but not in Germany?

You don’t even need tables or statistics to know that the gap between what the state takes and what the craftsman has in his pocket is too large. If I then come home with 10 euros net per hour as a highly qualified craftsman and have to pay 120 euros per hour for another craftsman’s service, something is definitely wrong.

As of today, it is already the case that even for well-off and well-paid employees, a house has become unaffordable. Even a doctor or engineer already has problems. For the middle class, it is now almost excluded.

And no, it is not normal to finance for 30-40 years with only 1 percent repayment.

You can see how out of touch with the world you are. Which skilled worker in the trades earns 4500 euros per month? Unless you work at VW or Daimler. Maybe there.

That shows your education. Either 45:12 = €3,750 monthly. Or - and this is more common - 45:13.5 = €3,333 monthly (including Christmas bonus + vacation pay). With a 38-hour week, that’s an hourly wage of €20.20. That doesn’t seem out of touch to me.

Despite massive inflation in recent years, which certainly affects not only construction and real estate prices but also all other areas, employees had to accept drastic real wage losses. Surely, there were also wage increases in some economic sectors.

Real wage increase: upward spike Real wage loss: downward spike So much for your selective perception

The crisis in construction currently does not invite wage increases in the construction industry.

Collective agreement on 29.05. with strong wage increases. €230 base amount and additionally almost 10% (spread over the term), equalization of East wages to West level. Where do you actually get your information?

And despite millions of citizens receiving benefits and refugees, there is still a massive labor shortage. I do not mean the shortage of skilled, highly qualified international professionals. The labor shortage applies to all sectors and can be felt most especially in the low-wage sector. And I do wonder where this labor shortage comes from. Is it really due to demographics? Where have the workers gone? Why do only 80 percent of Ukrainian refugees work in other countries, but not in Germany?

Ah – immediately a change of topic again when you don't know what else to say.

You don’t need tables or statistics to know that,

No, we just have to ask you, because the tables and statistics are faked by those at the top anyway, right?

As of today, it is already the case that even well-off and well-paid employees find a house unaffordable. Even a doctor or engineer is having problems. For the middle class, it’s now almost excluded.

No. That is simply wrong. It is still quite possible. It is due to the expectations from the time when money cost nothing. Building big with a 60 sqm garage and every gadget in the house. Please back that up with numbers and facts. What kinds of households with which incomes and what equity? What kinds of properties can the groups mentioned not build or buy and for what reasons?

And no, it is not normal to finance with only 1 percent repayment over 30-40 years.

Not entirely correct. Not normal at zero interest rate levels. At 0.5% interest, 1% repayment results in a term of about 81 years. For 37 years, you need 2.5% repayment. At maybe 4% today and 1.5% repayment, you are at 33 years. At 6% interest and 1% repayment (at this interest level or higher, almost 100% of all mortgage financiers were set with this repayment), it is also only 33 years. So why should it be abnormal to repay low today? If you are not too old, the financing is done by retirement. And if not completely, so what?