Why don't construction prices go down?

Vonovia declared the real estate crisis over (for themselves?) 1-2 days ago and is now building 3000 apartments again. Construction costs are expected to be reduced by 20% through serial production and the omission of underground garages (after all, there are plenty of parking spaces on the street).

LEG as well. But nevertheless, the rents for the new buildings will be around €15. Neighborhood garages or the omission of underground garages is almost mandatory in new/larger projects. Besides the costs, this also has to do with the environmental balance and certification. Nevertheless, sufficient parking spaces must be proven; parking is not allowed in existing parking spaces but must be provided on newly created areas (or in small, above-ground parking garages, where there are also charging stations and bicycle parking spaces).

Whereas Vonovia builds quite differently than the owner of a private home. Serial construction and underground garages are, in my opinion, not issues for most private homes and will not help with the costs there.

I don’t understand why people have the illusion that prices will go down again. Everything that has gone up in the course of inflation never goes back down. Unless the state falls into a severe deflation, or there is a currency reform due to hyperinflation or something similar, but then hardly anyone will build either, because in that case things are really heating up for everyone.

For that, you just have to look at history. Has any price from the 90s ever come back down? For any product? Nope.

One kg of butter cost €4.80 in 1998, €5.58 in 2007, €6.24 in 2013, €8.10 in 2018, and today roughly €11-13. This applies on average to everything else as well.
The whole thread is simply irrelevant, in my opinion.

The whole thread is simply irrelevant, in my opinion.

The thread has become less important. It starts in a time of massively increased prices due to Corona/Ukraine war/energy price explosion. And we are out of this exceptional situation, or the prices have returned to a somewhat normal level (gone down, but not below the pre-level). One just doesn't give up hope that one will be able to build again for 2,000€/sqm.

Yes, that's true. But it won't come back. The salary increases that followed the inflationary developments of the last few years are not being taken back now either. I would also like to build again at the price my father built at, which was about 900€/sqm in 1997.

The salary increases that kept up with the inflationary developments of recent years are not being taken back now either.

Not everyone has received such increases.

I would also like to build again at the price my father built at, which was around 900€/sqm in 1997 - approximately.

However, this desired number must necessarily be seen in the context of the construction interest rates at the time (probably twice as high), the significantly lower incomes as you quoted, and last but not least the desired construction standard as well as the willingness for own contribution. Today most houses are finished in a short time, including exterior plaster and landscaping. In earlier times, this was rather postponed and then done (mostly landscaping oneself or cost-neutral with acquaintances). In my case, it took about 7-8 years until everything was finished. I understand that this can seem discouraging at first, but upon closer inspection and consideration of the context, one discovers that it was by no means easier and also sees the differences. When we built in 1990, we had interest rates of 9-10% as far as I remember.