Why don't construction prices go down?

This is statistically noticeable; it was even a topic on the Tagesschau a few days ago: Prices for real estate are currently falling as strongly as never before since records began. This affects energy-efficient properties / new houses rather little, but existing properties with high energy demands all the more.

One is simply coming down from a (too) high level, which was reached thanks to low interest rates and high rents. In fact, the "energy guzzlers" are still too expensive.

A unified European economic area unfortunately does not work. 'A unified interest rate policy can be forgotten. The ECB’s zero interest rate policy was due to the ailing southern countries and not a prosperous German economy.

You cannot pursue a zero interest rate policy while the economy is running at full speed. That is exactly what has created completely wrong incentives here. Now everyone is complaining, but this should have been done 5 years ago.

And once again. Interest rates are currently historically still low at around 4 percent. And they will still rise despite everything.

The discrepancy between potential rental income, rent indexes, and rental regulations and the actual costs of creating housing is drifting further apart while the pressure on the housing market continues to increase. The costs for rental management and accounting are also rising. The best example is the cap on rent increases for the installation of energy-efficient heating systems. The rent can only be increased by 50 cents per square meter.

Are the housing industry or hundreds of thousands of private small landlords the Samaritan of left-green ideologists?

I am supposed to create housing, which I still could. Expanding the attic would bring 3 beautiful apartments. It just doesn’t pay off.

And despite subsidies, which are supposed to exist, a significant portion of the investment costs remain with the landlord. They will certainly enforce rent increases in advance. And since we do not want any upper limit and no limit on immigration at all, the situation on the housing market will worsen even further. You don’t have to be a prophet for that.

In our town (Westbayern, approx. 6,000 inhabitants), newly built apartments and properties from the developer are now like lead in the portals. So far, only about half of the last big construction project has been sold, and meanwhile the developer is covering the broker's fee. I'm not surprised at 5,000 euros per m2 of living space. The first apartment in the complex is now being rented out, key data 64 m2 for 890 euros cold rent. As a tenant in the countryside, you have to treat yourself to that first.

Although sales in this complex are more than sluggish, last week another developer started a project with 15 apartments, also for 5,000 euros per m2. Either the developers are hoping for soon falling interest rates, a windfall, or government subsidies for vacant apartments.

(...) And once again. Interest rates are currently still low at around 4 percent from a historical perspective. And despite everything, they will continue to rise. (...)

However, historically speaking, our standard of living has never been as high as it is today. When I started school in 1990, there could be no traffic jams of parent taxis in front of the school because there was only one car per household... and that was owned by the man to drive to work. Back then, by the way, it was still up to 45 hours per week; my father still went to the office every other Saturday. For vacation, we went to the North Sea... we only took one flight trip once, and my father almost started crying because it was so unbelievably expensive with four people and him as the sole breadwinner...

Interest rates will not rise significantly anymore. As soon as inflation is within the target corridor, interest rates will come down again. Not back to 0%, that's clear. But significantly below the current level.

When I started school in 1990, there was no traffic jam of parent taxis in front of the school at all, because there was only one car per household... and that was the man’s, used to drive to work.

Yeah, right. My mother also always teleported us to kindergarten, just like all the other mothers... In the Upper Swabian province, two cars were already standard in 1990. The point when my parents got a second car was actually exactly when I started kindergarten. The thing with the parent taxis has completely different reasons. For one, many children no longer go to the nearest school but somewhere else, and there is simply no school bus for that. And secondly, the parents no longer trust the students to walk to the bus stop carrying not only the school bag but also a sports bag.

Historically, however, our standard of living has never been as high as it is today.
When I started school in 1990, there couldn't even be a traffic jam of parent taxis in front of the school, because there was only one car per household... and that belonged to the man, to drive to work. At that time, by the way, it was still up to 45 hours per week; my father still went to the office every second Saturday.
Vacations went to the North Sea... we only took a flight once, and my father almost started crying because it was so incredibly expensive for four people and him being the sole breadwinner...

Interest rates will no longer rise significantly. As soon as inflation is within the target range, interest rates will go down again. Not back to 0%, that's clear. But significantly below the current level.

The key word, from my point of view, is actually "standard of living". I only think of the telecommunications and entertainment costs that most households have. DSL connection, each one mobile phone contract, and then Netflix or another streaming service. Just these costs alone hit hard nowadays.

On the other hand, the expectations for a property are huge – key word turnkey and finished outdoor area ready to move in.

I am now so glad that five years ago we bought our little living toilet (that's how we affectionately named our 90 m2 condominium with a 60 m2 terrace) at a reasonable price with a 30-year fixed interest rate. In the current situation, to be honest, I wouldn't want to have to even think about buying or building.