Rising Interest Rates Pull the Plug on the Construction Industry

The environment for investment in housing construction has changed drastically. Rising interest rates and construction costs are leading to a significant decline in investment activity. This will exacerbate the shortage on the housing market, as refugees from Ukraine also require housing on a signif...

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Published in:Wirtschaftsdienst (Hamburg) 2023-01, Vol.103 (1), p.16-19
Main Author: Michelsen, Claus
Format: Article
Language:English
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E22
E43
R31
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description The environment for investment in housing construction has changed drastically. Rising interest rates and construction costs are leading to a significant decline in investment activity. This will exacerbate the shortage on the housing market, as refugees from Ukraine also require housing on a significant scale. Clever solutions are needed to allow additional housing construction under the new conditions.
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subjects E22
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R31
title Rising Interest Rates Pull the Plug on the Construction Industry
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