Why don't construction prices go down?

Then construction prices are falling significantly in real terms. Construction prices, mind you, not the entire burden. But construction companies are not to blame for the interest rates.

Well, now they just switch from real to nominal construction cost increases. For a 20% increase with 10% inflation, they probably weren’t brave enough after all. But why? With the lack of competition, what can the customer do? Not build? ;-)

First, interest rates and inflation are low, construction costs rise exorbitantly (I recently read some forum posts again from 2019 and before, where people complained about the then 2500 euros/sqm and how expensive building had become). Then interest rates and inflation are high, construction costs rise exorbitantly. Material becomes more expensive, construction costs rise. Material becomes cheaper, but labor becomes more expensive, construction costs rise.

Now the truck toll is being increased or redesigned, then we will learn what immense impact the transport of house parts has on costs, because of course they will rise exorbitantly (this has already been cited in this forum as a reason for further cost increases).

A current study by Roland Berger assumes a recovery of the construction industry from 2025, probably only then will construction costs be able to rise again in real terms.

Probably more relevant for construction costs than the above polemic: In Dec 2022, a recovery from 2024 was forecast in a study by an EY Parthenon partner named Reineke. The author referred to "seamless digitization across all trades," which could increase productivity the most and help "cushion the current cost increases." Does anyone know if anything is actively happening there or is the construction industry currently only focusing on demands for "special funds" as possible ways out of the crisis?

In the same vein is a comment by a Mr. Hundertmark (who also has not converted to euros), who makes the somewhat flawed comparison that purely in terms of productivity a hypothetical construction worker who could build a house in a certain time in 1991 now needs twice as long, while a car production worker in the same time (since 1991) does not build one car but now two cars. Okay, the house as a product has become more complex, but that also applies to the car. I assume digitization is in no one’s interest, as it would pave the way to a more transparent and less sluggish market.

Yes, at the moment the customer is probably not building. I don't think anything more needs to be said about that.

The author referred to "seamless digitization across all trades," which could increase productivity the most and supposedly help "cushion the current cost increases." Does anyone know if anything is actively happening there?

We are talking about Germany. Digitization here means handing out tablets to students (the appropriate teaching concept then has to be devised by the teachers) and being able to download application forms as PDFs. ;)

In the same vein, a comment by a Mr. Hundertmark (who also has not switched to the Euro yet) makes the somewhat flawed comparison that purely productivity-wise, a hypothetical construction worker who could build a house in a certain time in 1991 now needs twice the time for it, whereas a car factory worker in the same time (since 1991) not only produces one car but now produces two cars. Okay, the house as a product has become more complex, but the same applies to the car.

It's relatively clear. Today, mainly robots stand in the car factory, which is why they can still afford assembly line workers working 35 hours with 14 salaries. At least until the Chinese really push into the market here. On the construction site, work is still mostly done as it was 50 years ago. Brick by brick; for installations, grooves are chiseled, plastering is mostly manual labor, tiling especially so. The carpenter is significantly faster than before with his cutting machine, and all the engineers today have software that takes over many calculations. But ultimately, they only play a minor role in total effort. And companies that have tried larger automation and prefabrication apparently have not achieved the necessary price advantage in practice... Speed was irrelevant anyway given the long waiting times in recent years.

Question about tolerances for the wall. According to the plan, a wall should have a raw length of 4.075m. We planned with 4.01m (plaster + buffer). The wall is now only 3.98... I found a table on the internet stating that for wall lengths of 3-6m, the tolerance is +-16mm. In my opinion, the wall is then outside the tolerance -> am I correct or does something else need to be considered? Thank you

The wall stands and no one will tear it down because of a cm/mm planning.

The wall stands and no one will tear it down because of cm/mm planning.

The kitchen just doesn't fit anymore...