Why don't construction prices go down?

I have no direct prices, but I heard an interview with a spokesperson from the [Verband der Fertighausbauer] (or so) in which order declines of 50-60% were mentioned. That should (indirectly) affect the prices.

Especially prefab builders are still carrying increasingly large order backlogs. And just in time for the big construction summit, the construction industry has reported another new increase in orders. Building is expensive, but rents will certainly not improve in the coming years. And then the relationship will normalize again. Landlords now have significantly higher financing costs and a foreseeable multitude of renovation obligations are coming. At the same time, demand remains consistently high. Someone has to pay for this. Either rents are capped and the costs are passed on to landlords, then no more properties will be built for rental and hundreds of people will queue for an apartment. Or the market is allowed to regulate it, then it will get more expensive.

The talk was about 10 years... going back to the 90s is clearly more than 10 years...

If we want to cling to the 10 years, one could easily counter with: 10 years ago we already had all LED lamps.

I don't have direct prices, but I heard an interview with a spokesperson from the Association of Prefabricated House Builders (or something like that) in which they talked about order declines of 50-60%. That should (indirectly) affect prices.

Certainly, there are still a few percentage points left in the margin, no question. Our contractor currently drives, I believe, an Audi QS7 or was it SQ7? There is definitely room for some downsizing. The craftsman has certainly earned well in recent years, but very few have become rich, especially not his journeymen...

There is simply hardly any room for large price reductions. Nowhere. Sure, if we want to snatch a big order from a competitor, we'll go to the pain threshold. But if we have to bring money at the end, we might as well forget it.

And that the entrepreneurs give up a lot of profit... you shouldn't fool yourself with that illusion.

Certainly, there are still a few percentage points left in the margin, no question. Our construction contractor is currently driving, I believe, an Audi QS7 or was it SQ7? Surely, there is still room for some downsizing.
The craftsman has certainly earned well in recent years, but very few have become rich, especially not his journeymen...

There is simply hardly any room for significant price reductions. Nowhere. Sure, if we want to snatch a big contract from a competitor, we’ll go to the pain threshold. But if we have to bring money at the end, we might as well forget it.

And that contractors would do without much profit... you don’t need to have that illusion.

You can keep doing that as long as you have enough contracts or manage to reduce fixed costs (employees, among others). If that’s not the case, you sometimes take on a contract just to keep production, etc. busy.
At every stage of the value chain, something has to be sacrificed again.
From the quarry or logging to the craftsman/construction contractor who installs it.

If you come under pressure, you might try to get additional discounts from Siemens for PLC/drive technology, or will the 3rd party drive be installed?

Heard secondhand today: Offer for brick shell construction in spring 2023 180K Eur, then waited, without changing the scope of work a new offer with the same contractor was recently requested in autumn: 150K Eur. That means waiting half a year ⇒ -16.6%