<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In 2021, 293,000 dwellings were completed in Germany. This is at least 130,000 more than were completed at the low point in 2010, but less than the government had planned in order to limit the housing shortage. It is very likely, that residential construction is going to decline following the strong increase in interest rates and already falling residential prices. This decline in residential construction can only be expected in the short term; in the medium term there are good reasons to believe that Germany has not finished building. It is therefore important to ensure that the elasticity of construction supply is not reduced during this adjustment phase.</p>
</abstract>

In 2021, 293,000 dwellings were completed in Germany. This is at least 130,000 more than were completed at the low point in 2010, but less than the government had planned in order to limit the housing shortage. It is very likely, that residential construction is going to decline following the strong increase in interest rates and already falling residential prices. This decline in residential construction can only be expected in the short term; in the medium term there are good reasons to believe that Germany has not finished building. It is therefore important to ensure that the elasticity of construction supply is not reduced during this adjustment phase.

Upturn Over – Interest Rates Weigh Heavily on Housing Construction

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Upturn Over \u2013 Interest Rates Weigh Heavily on Housing Construction"}

In 2021, 293,000 dwellings were completed in Germany. This is at least 130,000 more than were completed at the low point in 2010, but less than the government...

Upturn Over – Interest Rates Weigh Heavily on Housing Construction

Published Online: Jan 24, 2023

Page range: 20 - 23

DOI: https://doi.org/10.2478/wd-2023-0010

© 2023 Tobias Just, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.