Building materials are becoming more and more expensive and are slowing down new construction

Construction site for residential buildings in Rendsburg: The new building is faltering because higher interest rates and the expensive building materials are a burden.
Image: dpa

Steel, stones and insulating materials are becoming more and more expensive. Client budgets are no longer sufficient. That slows down new construction.

SSteel, bricks, insulating materials – the prices for building materials are rising so much that, according to the industry, fewer people want to build. According to the Federal Construction Industry Association, new construction is losing momentum. "The client's investment budgets for measures in residential construction, commercial construction and infrastructure are simply no longer sufficient," explained Chairman Marcus Nachbauer at an event. Adjusted for prices, the industry is therefore expecting a drop in sales of one to two percent this year.

"Overall, construction activity and sales remain at a high level," Nachbauer said. In the coming year, new construction activity will decrease because orders are already declining. The loss of sales in the new building could probably not be fully compensated for by refurbishment. At best, the association expects a constant sales level in real terms.

The price of wood has also been a major topic in the construction industry for months. In the Corona crisis, many consumers suddenly discovered DIY and thus drove prices up significantly.

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