Housing cancellations reach record high: What does this mean for the housing market?

Housing cancellations reach record high: What does this mean for the housing market?

According to a report by amp2.wiwo.de,
Cancellations in residential construction are reaching a record high. According to a new survey by the Ifo Institute, 22.2 percent of companies are affected. This could worsen the situation on the housing market.

According to the current survey by the Ifo Institute, the wave of cancellations in German housing construction has reached an all-time high. Companies are complaining about canceled projects due to increased interest rates and expensive construction prices. Almost half of the companies have a lack of orders and almost one in ten companies are already reporting financing difficulties. The outlook for housing remains bleak as companies brace for tough times ahead. The German Tenants' Association also expresses concern about the development, as the slump in housing construction could further worsen the situation on the rental housing market. There is already a shortage of 700,000 apartments in Germany, and asking rents are continually rising. The tenants' association is therefore calling for an offensive for housing oriented towards the common good and a special fund worth 50 billion euros for social housing construction.

The ailing construction industry is also putting a strain on the German economy and could cause Europe's largest economy to slip into recession. These developments are worrying and could have far-reaching effects on the housing and real estate market. It is important to closely monitor current developments and take possible measures to stabilize the housing market.