The federal government has realized how missed their target for new construction is.
It has long been foreseeable that this year there will be nothing with the 400,000 new apartments that the traffic light alliance has given itself in the coalition agreement.
There are several reasons for the decline in new construction and for a general reluctance to buy, as reported by the expert committees in the major cities: Economic development has clouded over, and the Russian attack in Ukraine has given rise to new concerns, which is why some people are probably spending less like than before.
At the same time, the costs for construction and energy or due to the shortage of skilled workers have increased significantly.
Above all, since the summer the European Central Bank has raised the key interest rate to 2.5 percent so far, and building interest rates have risen as a result.
The next interest rate decision is due on Thursday.
However, with the industry criticism of the new new construction subsidy from Construction Minister Klara Geywitz, the impression easily arises that simply a lack of state money would mean that construction sites would be idle and that government targets would be missed.
Instead of giving billions in aid, the state should better facilitate and digitize the processes for the construction industry.
When it comes to building subsidies, the right approach is to focus more on climate-friendly renovations.
Because the energy consumption of older houses will decide whether the building sector breaks another mark - and misses the climate targets of the government.