Why don't construction prices go down?

Right. We pay a relatively large amount of money for the garbage that the supplying countries don’t want.
I see no contradiction to my statement. If I pay 25,000 EUR for the Opel Astra, while the 1 Series BMW is available for 30,000 EUR, I have made a very bad deal with the Opel, even though the Opel seems "cheaper" in absolute terms...

But you can change a car. A meal you have eaten is eaten.

I have always found it absurd to think about five-figure sums for cars – to think about them while simultaneously saving on food and drink borders on stupidity.

But this particular stupidity is simply very German, which is why we are well suited as a dumping ground for second-rate qualities in food.

Ludwig Dorffmeister from the ifo Institute recently stated in an interview (I refrain from giving a more precise source for self-protection) that the worst part for the construction industry is yet to come. It was along similar lines to what was discussed here.

Regarding new building prices, however, he said that unlike real estate prices, they have not yet fallen because there was still a lot of existing stock and prices are negotiated long in advance. So a lag effect, but there definitely is a gap. Maybe the market does work after all...

On YouTube there is a video 'Der Anbietervergleich: 1 Haus im Wettbewerb mit 6 Hausherstellern' by 'a better place'. I just wanted to share it because I watched it quite interested. The connection to the topic could be that one of the (anonymous) manufacturers, according to my understanding, actually granted a not insignificant discount directly without negotiating.

Otherwise, they come to prices of about 3100 to 3500 euros per sqm. According to my understanding, however, (almost) without additional construction costs. I suspect that all providers in the comparison represent rather an upscale level. The house overall does not appear to be 'ganz günstig'.

Today there was a report in the HNA from Kassel, a system medium of the Funke Mediengruppe. They should know.

The problems in the German construction industry have now also attracted international media attention. As the Financial Times (FT) reported last weekend, Germany is facing a "total collapse" in the construction sector, which could have far-reaching effects on the entire economy. Compared to Europe, property prices in Germany have fallen the most, construction costs are rising the highest, and the number of construction orders has virtually collapsed compared to the rest of the EU. The German construction crisis is dragging down the entire EU economy.

Only a small excerpt of the whole article. It does not look good. Many construction companies are going bankrupt these days.

But generally, as expected, we are heading into very, very troubled waters. Today’s ruling by the BVerG dealt the traffic light coalition a severe blow right to the gut. 60 billion are now gone. These are planned subsidies, especially for energy and the heat transition, which will probably be significantly smaller. Among other things, the abolition of the Renewable Energy Sources Act surcharge as well as the promotion of electric cars was financed with this.

Already mentioned several times here, we are heading into a liquidity crisis. Wrong, we are already in the middle of it.

Yesterday I did some calculations. Since February 2022, a staggering 2.05 million refugees have come to Germany. This now exceeds all limits. Nobody can finance that anymore; the majority of these refugees have entered our social system and are being generously supported. We are talking about a period of only 21 months.

Nobody can build housing that fast. And the housing construction has collapsed as described above.

And now homelessness is really starting in Germany. There will be parts of the population who simply cannot find housing anymore. Yesterday I had the first inquiry at our rental department from a homeless man.

At the moment, pretty much everything seems to be getting out of control. I expect the breakdown of the traffic light coalition still this year. Now it’s going to the core. Another year with these refugee numbers and this country will be broken apart. We can no longer manage this.

The land of left-green dreams has unfortunately burnt down.

(...) The land of left-green fantasies has unfortunately gone up in flames.

Even if the rest of the post is populist rubbish... here he is unfortunately right. The faction "Die Linke" has dissolved, the Greens have now pretty much completely backtracked on the asylum issue and have finally arrived in reality... and the FDP will once again be kicked out of the Bundestag. Due to the wars in Ukraine and Gaza, as well as the looming conflict over Taiwan, Germany is slowly returning to reality. Hopefully, it’s not too late yet... But when you read the demands of the GdL... you have little hope that the penny has slowly dropped.

Even if the rest of the post is populist rubbish...

What is populist about that? We need to become realistic and sensible in this country, finally. I have nothing against refugees. Nobody can afford it anymore. Maybe some should slowly wake up from their bubble of prosperity.
In any case, a few token border controls will not ease the situation.

Well, a lot is currently getting out of hand here. We will certainly experience one or the other surprise in the coming weeks.