Posted 12/4/2023, 7:25:16 PM
Housing Crisis Deepens in Germany as Home Prices Plunge 10%, Construction Projects Cancelled amid Skyrocketing Interest Rates
- Skyrocketing interest rates have led to a housing crisis in Germany as construction costs rise and demand falls
- German home prices fell 9.9% in Q2 2022, the steepest decline since 2000, due to diminished demand from high rates
- The construction sector is struggling with a record 22% of companies canceling projects and 48.7% reporting insufficient orders
- The government has announced a €45 billion package to promote house building and address the crisis
- Industry experts predict the challenges will persist despite government incentives due to rising financing costs and low demand