Why don't construction prices go down?

A lot has already been discussed here about construction prices in the past and today. In the ARD Audiothek, you can find the podcast Gold & Asche, which deals with this topic in episode 7. It evaluates how expensive real estate was in the past compared to today. In addition to income and wealth, changes in living space, interest rates, and much more are also addressed. Very worth listening to! Conclusion, by the way: even with the current increases in prices, building today is relatively inexpensive in proportion. Especially if you calculate, for example, by the square meter.

But that doesn't help, because nowadays nobody wants to live with four people in 100m² anymore, and 8m² of that is taken up by the HAR.

That's the catch with the inflation calculation. It takes into account that the more expensive car from 2024 can do more than the vehicle from 1984. And therefore the price increase is moderated by a factor.
But that doesn't help those who could still afford the simple vehicle in 1984, but can no longer afford the vehicle from the same class in 2024.

In 2019, I would have agreed, back then I wasn’t even looking at supermarket prices.
I don’t keep a household budget book, but by now I notice without one that we spend a lot(!) more on groceries than back then. And I now look very closely at the price tags and leave some things I really like if they’re not on sale.
My favorite is Cheddar from Kerrgold. We used to basically inhale it at 1.49 EUR/150g...

Today, at 2.99, only the kids get it; I buy other, cheaper cheese for myself. 100% price increase in 5 years.

That's why I always say: five years ago with a 1% interest rate for the mortgage, 2,700 EUR/m² (according to your calculation, significantly less according to mine), 2 children... back then 5,500 EUR net was still a really good income, with which you could afford quite a bit. Also a vacation, restaurants, concert tickets, etc.

Today in 2024, recalculated to 2019, even with the wage increases since then, it’s worth at best 4,500 EUR. The mortgage alone has become 500, 600 EUR more expensive, plus increases of 20, 30% in house prices. It gets tighter then. It’s enough for a decent life, yes. But you really have to watch every penny...

Alcohol, strangely enough, has become only very slightly more expensive percentage-wise. At least wine and whisky. I don’t drink beer.

That doesn't help, because nowadays no one wants to live four people in 100m² anymore,

But that's not a problem of prices, but of desires. Who is forcing you to 160sqm?

Try the Cheddar in block form from LIDL, it is cheaper and also tastes good. Kerrygold recently had a bad test with exceeded limits of mineral oil residues (however, it was butter).

I'm out of this anyway. My place is set. But I wouldn't have built 100m²; then it would have remained the rental apartment with 104m². By the way, small houses are much more expensive per m² than large houses. Statistically, all of that may be calculable. But the reality is that most people don't even consider building with 100m². There are still enough affordable rental apartments in that size range... But tell me yourself. You finance this every day. What is the proportion of single-family houses with 100-110m² for 4 people in new construction? The argument that one should live like their grandfather while everyone around them doesn't is silly...

Try the Cheddar in pieces from LIDL, it’s cheaper and also tastes good. Kerrygold recently had a bad test with exceeded limits of mineral oil residues (but that was butter).

I hope it’s clear that this was just an example. Of course, I can still step down a few levels, although I generally avoid discount stores. Gut & Günstig works too. But and that is the problem. If I belong to those who already shopped at the discount store in 2019 because there was barely enough... they can’t go down 2 or 3 more levels... Well, maybe rummaging through trash bins still. That is a massive problem and will, in the medium term, blow up some financings < 2019/2020. Because one thing is, I think, clear. The current price level is here to stay.