Housing construction suffers from three deficiencies – Bavaria

According to the assessment of the socially oriented housing companies, housing construction in Bavaria suffers from a lack of materials, staff and land as well as from too many regulations. In a survey by the Association of the Bavarian Housing Industry among its 490 member companies, more than half complained about a three-fold shortage of craftsmen’s capacities (63 percent), building materials (57 percent) and land (53 percent). In addition, 59 percent see the increasing technical requirements for residential buildings as a hurdle for construction.

“The companies are increasingly reporting delays due to a lack of material and overload at the executing companies,” said association director Hans Maier, according to the announcement. According to Maier, the consequences are rising construction costs and longer construction times. In the worst case, planned new construction projects would have to be postponed, said the head of the association. The members of the Association of the Housing Industry are predominantly housing cooperatives and municipal housing companies that charge comparatively low rents. Regardless of the difficult initial situation, according to the survey, more than half of the companies (54 percent) are planning higher investments in residential construction in the next year. Almost a third of the companies want to keep the level of investment at the same level, and only ten percent intend to spend less on construction activities.

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