The federal government is fueling the housing shortage — and driving the construction industry to ruin at the same time

Germany’s construction industry is in real crisis. There will be no shortage of work due to the great need for housing due to illegal mass migration. But the general conditions are disastrous as a result of the complete political failure of the federal government. Now the threat of mass layoffs in the construction industry is looming.

Germany really needs to build a lot of apartments. Everywhere you look there is a shortage of (affordable) housing. The reasons for this are complex – the fact is that uncontrolled illegal mass migration has been continuously exacerbating the problem for years. However, the federal government does not want to curb it effectively. And instead of ensuring better conditions, at least in the making, the federal government is making the situation worse, thereby creating a crisis. Instead of apartment construction expanding, order volume is falling.

The Federal Republic is struggling with high interest rates, which make many construction projects unfinanceable given already very high land prices. Especially because the construction of houses is becoming artificially more expensive due to increasing requirements regarding insulation and heating (see also the disastrous heating law, which is plunging the former into a real estate crisis). Not to mention the sharp rise in prices of construction materials. A multiple burden that can hardly be handled anymore. Who should still be able to buy a house or apartment like this?

The 28.3 percent decline in building permits in the first eight months of this year compared to the same period last year speaks volumes. Instead of the expected 400,000 new apartments, there will probably only be a quarter million this year. But you would need double the amount to relieve some pressure on the housing market. But serious imbalances are leading to a persistent imbalance in supply and demand, causing rental prices to skyrocket. This leads to an increase in prices which gradually makes living space unaffordable.

In the construction industry itself, this set of problems is now leading to fears that 300,000 jobs in the sector could be lost by 2025. Another consequence of failed energy, environmental, migration and economic policy, caused by the complete incompetence of the political class. Germany is experiencing an unprecedented economic policy self-disintegration, which will cause so much lasting structural damage that even a complete change in policy after the next federal elections can hardly bring any salvation in this regard.