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

<p>This article examines the recent downturn in Germany’s housing construction sector, marked by a significant drop in business climate indicators. Key factors include material shortages, order cancellations, financing constraints, and a lack of new orders, which have worsened since the COVID-19 pandemic and the Ukraine war. A central driver for this development was the sharp and rapid increase of the ECB’s key interest rate and the subsequently deteriorating financial conditions for house building. A comparison with other European countries is also provided. The outlook remains bleak, with continued pessimism expected in the housing construction sector.</p>
</abstract>

This article examines the recent downturn in Germany’s housing construction sector, marked by a significant drop in business climate indicators. Key factors include material shortages, order cancellations, financing constraints, and a lack of new orders, which have worsened since the COVID-19 pandemic and the Ukraine war. A central driver for this development was the sharp and rapid increase of the ECB’s key interest rate and the subsequently deteriorating financial conditions for house building. A comparison with other European countries is also provided. The outlook remains bleak, with continued pessimism expected in the housing construction sector.

On the Current Crisis Mood in Residential Construction

Wirtschaftsdienst

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

Zur aktuellen Krisenstimmung im Wohnungsbau

This article examines the recent downturn in Germany’s housing construction sector, marked by a significant drop in business climate indicators. Key factors...

On the Current Crisis Mood in Residential Construction

Published Online: Jul 18, 2024

Page range: 503 - 506

DOI: https://doi.org/10.2478/wd-2024-0128

© 2024 Felix Leiss et al., published by Sciendo

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