ᐅ Is the construction boom still ongoing?

Here in the residential area (Middle Franconia), 30% of the plots have been developed. The rest have given up because of the three-year building obligation; they will wait this out before the plots revert to the city. As if it would be cheaper in 2024.

Oetti schrieb:

And for that, in the following years, you had to work hard on the construction site every weekend with all the helpers until finally everyone in your circle of friends or family had a house...

To be honest, I’d rather spend that time with my wife and child and not owe eternal thanks to 50 people...

Sure, that’s one way to look at it. What I meant is that it’s hard to compare "back then" and "today" because such building projects are rare nowadays. On the other hand, many projects back then wouldn’t have been possible without all that manual labor. Without that manpower boost, these families (including mine) probably wouldn’t have been able to get their own home.

But when I hear the stories from those building days, I’m sure—even though there was a lot of hard work—it was a great experience. At least, there are plenty of funny anecdotes from those “build-on-Saturdays” years.

LastCookie schrieb:

At least the prices for existing properties have dropped significantly.

I could imagine that this is also related to the current surge in energy prices.
Existing homes often rely on gas or oil; the additional costs plus more expensive electricity and mortgage payments (which usually cost more than rent) are probably unaffordable for many people at the moment.

kati1337 schrieb:

Sure, you can see it that way, of course. What I meant is that it’s difficult to compare "back then" and "today" because such buildings are hardly ever made anymore. On the other hand, many construction projects back then wouldn’t have been possible without these muscle-heavy loans. Without the manpower bonus, these families (including mine) probably wouldn’t have been able to get their own home.

But when I hear the stories from the building times back then, I’m sure—even though a lot of work was involved—it was also a great time. At least there are plenty of funny anecdotes from the years of “building Saturdays.”

You can compare it. Construction costs in Bavaria, for example, were at a low point around 2004/05—relatively cheaper than in the 1990s. Interest rates in 2005 were around 4.5% for 15 years, and the cost of new construction in Bavaria was about 1500 euros per sqm (160 sq ft).

Now here is the critical point: Currently, it’s around 3000 euros per sqm (320 sq ft) (probably even higher now), and interest rates are between 3 and 4%. According to Statista, net income has not doubled, however…

Today I spoke with a kitchen manufacturer, specifically with their carpenters. Until the first quarter of 2023, they are barely able to keep up with work, but the “typical homeowners” (in this region meaning simple households earning a net income of around 8,000 with an inheritance) are paying more attention to prices. The order situation for the second quarter currently looks somewhat weak, so more like the normal level before the construction boom of the past eight years. They are fine with that, since they don’t expect an end to the delivery problems in the appliance sector either. They have customers who have been waiting for electrical appliances for over six months.

Myrna_Loy schrieb:

I spoke with a kitchen manufacturer today, or rather their carpenters. Until the first quarter of 2023, they have hardly any free capacity, but the “typical home builders” (which in this region means simple households with a net income of 8,000 and an inheritance) are paying more attention to the price. For the second quarter, the current order situation looks slightly weak—more like what it was before the building boom of the last eight years. They don’t mind, as they don’t see an end to the supply problems in appliances either. They have customers who have been waiting over six months for electrical appliances.

welcome to my world. Try to get a carport at reasonable prices! It’s crazy—once all orders are completed, there will have to be a major recession. Because nobody will pay these prices anymore!!!