Never before have so many housing construction companies complained about a lack of demand, according to a study.
Published 4 months ago · Real Estate
Reading time: 31s · Source 67s · · handelsblatt.com
Sentiment: · · ·- 57% of housing construction companies reported a lack of orders in January, up from 53.6% in December, marking the highest level ever recorded.
- The housing crisis has become a normal state, with no relief seen from recent ECB interest rate cuts.
- Business sentiment in the housing sector has further declined due to significantly worse expectations for the coming months.
- Current business conditions are viewed slightly more positively, with order cancellations decreasing to 9.7%.
- Social organizations warn that the housing shortage is severely impacting low-income individuals, leading to increased debt and homelessness.
- High rents particularly affect single parents and young people, with declining construction completions expected to have noticeable effects on rental supply in the coming years.
- Only 260,000 new apartments are expected to be completed in 2024 and 230,000 in 2025, falling short of the actual demand for housing.
Find out the mood, impact, relevance and relevant interest groups
Analyses of the article
SENTIMENT
The article highlights significant challenges in the housing sector, including a lack of orders, declining business sentiment, and the severe impact on low-income individuals, indicating a negative outlook.
IMPACT
Short
The article discusses immediate impacts on the housing market, particularly the decline in orders and construction completions, which are expected to affect rental supply soon.
RELEVANCE
High
The housing crisis affects a broad audience, particularly low-income individuals and families, making it a highly relevant issue.
STAKEHOLDER
public
The public is directly affected by the housing crisis, as it leads to increased debt and homelessness, particularly among vulnerable groups.