Housing crisis in Germany deepens due to record low demand
Almost half of the country's construction companies complain of insufficient orders
The housing crisis in Germany continues to deepen as the drop in new orders reaches record levels.
Bloomberg writes about this with reference to a survey by the Ifo Institute from Munich.
It is noted that almost half of the builders in the country report an insufficient number of orders, and more than 10% face financial difficulties. In November, 49.1% of builders reported a lack of new orders, the eighth consecutive increase and the highest since 1991.
According to the survey, the number of companies in financial difficulties increased to 11.1%, compared to 9.9% in the previous month. Increasing construction costs and rising interest rates are making many projects unprofitable, and the burden on builders could affect long-term construction capacity and exacerbate the shortage. Chancellor Scholz's coalition failed to meet the target of building 400,000 homes annually.
