Why don't construction prices go down?

  • Erstellt am 2023-05-15 08:17:32

Tolentino

2023-11-16 13:25:00
  • #1
...and also can. I wonder how, but they can.
 

WilderSueden

2023-11-16 13:36:31
  • #2
It's the thing with push and pull. Cost-push inflation normalizes quite slowly, as demand has to collapse across the entire chain first. At this point, we should be getting there slowly, producer prices are currently collapsing. Now it just has to work its way back through the chain to the customer. That just takes time.
 

BackSteinGotik

2023-11-16 14:16:54
  • #3
One could think that way. But the order situation in the construction industry and rental housing construction speaks against it. The big hoped-for price reductions are simply no longer possible. For that to happen, building land would have to become cheaper again, wages in the trades would have to decrease, and all suppliers would have to undergo major cuts. Although I suspect the latter has already happened. Looking at the long series of numbers for the construction cost index for single-family homes, one notices that it has basically only known one direction. Upwards. Even during times of significantly higher inflation. It has already been discussed here – the anomaly that households could afford more property (or ownership in general) was solely due to cheap money. That is gone now, it costs money to borrow again. So adieu KNX and all-around happiness – 125m2 gable roof instead of 180m2 city villa. Then building suddenly becomes possible again.
 

Matze8474

2023-11-16 16:13:46
  • #4
We are currently building and started at the beginning of June.

There is definitely some room for negotiation in terms of price, but not so much that prices can just be pushed down easily. Within the framework of the architect's planning, for example, we have 2 items that turned out to be cheaper in reality than they were planned in March of this year.

Screed: The architect had planned around €13,000 for screed, insulation, application, etc. Living area: 180sqm + garage + technical room
Paid: just under €9,500, even though we took the additional item of fast-drying screed, which was €1,000 extra. Thus, €8,500 would have been possible with a longer heating phase.

Another example: drywall construction

Around €4,800 was planned here and we paid €2,800.

At the same time, however, windows and the roof were more expensive than expected/planned by the architect.

I am slowly getting a total cost picture, as the "major" trades such as shell construction, windows, roof, plaster, etc. are done and we will probably end up at €2,300 - €2,400/sqm.

However, we do not have a general contractor, but rather self-assignment and also contributed a lot of own work. Price, of course, without land. Including land, we are also >€3,000/sqm (referring to the house).
 

Schwabe93

2023-11-16 18:44:38
  • #5


May I ask in which area the building is taking place and what work was done personally?

A lot of personal work is defined differently by everyone.

G
 

markusla

2023-11-16 19:14:37
  • #6


I suspect we will come out similarly. Included own work for us is installing the ventilation system, possibly dry construction and floors. Especially for the building envelope (shell construction, roof), we are under the cost estimate. Square meters similar.
 

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