The housing construction sector in Germany continues to decline and this could lead to a social explosion, the news service of the German television channel ARD Tagesschau reports on April 11.
The shortage in the real estate market is increasingly acute. Experts and representatives of associations warn of the economic and social consequences.
“I have never experienced such a rapid and widespread decline,” – said Ralf Stockschleder, director of the construction materials company JASTO. He points out that nowadays almost no one wants to take out loans to build a house.
“People are deeply insecure”, says the 57-year-old JASTO executive, adding that the main reason for this situation is the policy of the German government. Laws change suddenly, subsidy programs are canceled or become too restrictive.
New regulations and bureaucracy are making it nearly impossible to build new single-family homes and apartment buildings, Stockschleder said. “The general conditions are simply terrible”“, highlights the director of JASTO.
The housing construction sector has been contracting since 2021, according to an estimate by the German Institute for Economic Research (DIW). According to DIW calculations, this year the drop will be 5.4% and the crisis in the construction sector will affect the economic growth of Germany as a whole.
It should be noted that the construction industry in Germany has the same economic weight as the automobile industry. Last year, the construction industry generated revenues of almost €537 billion. Approximately one in seven jobs in Germany is related to the house construction industry.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.