Housing crisis: Inputs continue to collapse - experts warn!

Housing crisis: Inputs continue to collapse - experts warn!

Berlin, Deutschland - The Central Association of German Construction Management draws an alarming balance: In August 2024, the order incoming in housing construction continues to drop dramatically! Felix Pakleppa, the managing director, raises the alarm - the valley sole has not yet been reached! Compared to the previous year there is a decline of over 6 percent, and almost 30 percent less orders than 2022 - a worrying trend!

The reasons for this crisis are depressing. The building permits have been falling for over two years, and almost 100,000 apartments are missing this year compared to the years 2020 to 2022. Pakleppa urgently warns that this situation must not become a new normality - the effects are devastating for the housing market and for the numerous people who are looking for a roof over their heads. But that's not all! The dramatic decline in orders also leads to a significantly lower utilization of the capacities that were once created by construction companies!

measures urgently required!

A ray of hope in the middle of the crisis? The discussion about detoxification of the state building regulations could tear the helm around! The building type E is seen as an opportunity to reduce construction costs. But these positive approaches are in a strong contrast to the predominantly negative trends. According to the IFO business survey, the order range in housing is only 3.2 months-a dramatic decline compared to 5.7 months in August 2022. Despite all government efforts, the willingness to invest in the residential property area remains on the route-the impulses are simply not strong!

But not everything is dark: civil engineering shows better demand, despite a slight decline compared to the previous year. The sales development in the main building industry presents itself stable: around 10.2 billion euros were implemented in August - an increase of 3.3 percent! But in building construction, it looks dreary with a decline in sales of 4 percent. The trend is worrying and the construction industry is facing a crucial turn - it remains to be seen whether and how quickly positive changes will occur!