Status: 11/26/2022 3:42 p.m
Higher interest rates and sharply rising prices mean that many families have to drop house building plans. Municipalities cannot get rid of their building sites. An example from Baden-Württemberg.
Stefan Gödecke sadly turns the pages. The folder is as thick as his dreams once were, filled with pictures, plans and drawings. They show the house that the 38-year-old had wanted. For himself and his family. But the dream of a house is buried. It is now at the bottom of the shelf in the family living room.
Getting the folder off the shelf hurts Gödecke. It reminds him over and over again that they can no longer afford the house. Despite two salaries, despite a lot of work and despite the willingness to sacrifice a lot for this dream.
The Gödecke family lives in Gammelshausen in Baden-Württemberg. They feel at home here, says Stefan Gödecke. With the second child, however, her 88 square meter apartment had become too small. When it became clear that a new development area was to be built next door on a green field with a view of the neighboring Swabian Jura, the decision was made for the family: they wanted to build there.
“It just doesn’t work”
The municipality of Gammelshausen has designated 19 building sites in the development area. In the first application process, the applications bubbled up. There were more than 100 in total. The Gödeckes ended up on the list of replacements. A time of fear and hope began for them.
As a result, the Ukraine war drove up prices, interest rates and construction costs. When the Gödeckes got to the top of the list and they were finally able to buy a building site, the once ample financial buffer was exceeded. “In the end you have to say it just doesn’t work. It’s too much of a burden for us as a family of four,” says Gödecke today.
Cancellations cause heart palpitations
Not only the Gödeckes had sleepless nights because of the new development area in Gammelshausen. Mayor Daniel Kohl speaks openly about his worries: “We had already arranged notary appointments, and two days before we got the call that we couldn’t manage it financially.” The small municipality paid 1.5 million euros in advance for the development of the building area. A lot of money for a place like Gammelshausen with just 1500 inhabitants, hardly any trade and therefore also little budget. The mayor has just sold four of the 19 building sites.
He now telephones those interested in the former list of applicants every day – so far without success. Kohl hears from his counterparts in other communities that they have problems similar to his. “This is a topic all over the country that we as mayors have never known before.” The financial concern for the community treasury is one thing – the mayor’s concern for the situation of the community members is another. “When you realize that the lifelong dream of a family of two, three or four is shattered, that also takes a toll on you personally.”
Still full order books at the construction company
Two applicants from the Gammelshausen development area were interested in a house from SchwörerHaus. Now there are two potential orders less for the prefabricated house manufacturer. With more than 40,000 houses built and 1800 employees, SchwörerHaus is one of the largest prefabricated house companies in Germany. Gammelshausen describes a trend, confirms Johannes Schwörer. He is the managing director of SchwörerHaus. “Those who are currently asking the question, do I want to buy or build them, are rather reluctant.” The reason for this is the development of interest rates on building loans, rising building site costs and jumps in the cost of building materials.
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SchwörerHaus’s order book is still full, says Schwörer. They are fully booked until 2024. But by the middle of next year at the latest, demand should start to pick up again in order to have security in the long term. He warns politicians not to let the construction industry bleed dry. On the one hand, people want more living space in order to counter high real estate and rent prices, on the other hand, subsidies are not being extended and are running out.
Despite the negative figures, however, he is optimistic about the future. “I don’t think it will be as bad as feared.” Above all, the full order books reassure him. In addition, the war in Ukraine will eventually end, according to the managing director, and then the economic situation will improve again. Also for the construction industry.
Building permits are declining across Germany
Stefan Gödecke, Daniel Kohl and Johannes Schwörer are not alone in their worries. This is also confirmed by the Federal Statistical Office. It evaluated the building permits from January to September 2022. In September alone it was 9.1 percent less than in the same month last year. In the entire period from January to September it was a minus of 3.7 percent.
For Gödecke and his family, building a house is off the table for the time being. He’s been sleeping more peacefully since then, he says, and closes the folder with the construction documents. They now want to rearrange their apartment to make the most of the cramped home. And who knows? Maybe they’ll get the folder off the shelf again at some point and make the dream come true after all – when interest rates and prices go down again.