Number of the month of May: 16 percent

Building is becoming more difficult not only for families, but also for housing construction companies. In April 2023, 16 percent of construction firms reported that orders had been canceled. According to a survey by the ifo Institute number of canceled construction projects was slightly lower in the preceding months.

In January 2023, 13.6 percent of the surveyed construction companies reported order cancellations. By February, this figure had already risen to 14.3 percent. However, it wasn't just cancellations; new orders failed to materialize altogether. According to the survey, 25.5 percent of all residential construction companies complained of a lack of new building projects in April. This represents a two percent increase compared to February.

The reasons for this lie in the current financial situation. Within a year, not only did construction loan interest rates rise to almost four percent (as of May 2023), but so did the prices for structural work. The latter increased by 13.7 percent compared to the previous year (as of February 2023). Looking at individual aspects of structural work, concrete work became 15.2 percent more expensive, and masonry work increased by approximately 12.7 percent. This information comes from press release no. 139 of the Federal Statistical Office .

Prices for construction work also rose, by as much as 16 percent. Heating systems and central hot water systems are leading the way in terms of cost increases, with a rise of 18.2 percent. These are just some of the price increases the construction industry now has to contend with.

These figures make one thing abundantly clear: the housing crisis is intensifying, and it will be difficult for the government to meet its new construction targets. This is especially true if the number of skilled workers does not increase again and inflation does not come to an end soon.

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