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If there is a 'market abberation' find it, and deal with it. For example, if tons of foreigners are buying homes, this might be a problem. Regulate it. If ton

If there is a 'market abberation' find it, and deal with it. For example, if tons of foreigners are buying homes, this might be a problem. Regulate it. If tons of people are buying 2-3 homes and renting, thereby driving a wedge between home-owners/non-home-owners, regulate that. If the issue is low interest rates, which are necessary for the regular economy, consider building in housing prices into the inflationary index, because it's a real thing that people have to pay for. This might affect how rate are set. That said, it's ECB and not really Germany anymore. FYI this should hint at the incredibly serious problems of Euro-area countries losing monetary policy by joining the Eurozone ... If it's really just supply/demand build more homes. It could be a function of older, crappier areas finally getting caught up in the modern world, in which case this might be an existential change that Berlin will have to deal with. The 'downtown' spots will eventually be paid for by people with decent jobs. Some pretty harsh and weird rules would have to be put in place to stop this. Zone some areas for affordable housing. My bet is the answer is mostly to build, but also that it's a 'neighbourhood' issue i.e. Kreuzebeurg (sorry, forget the spelling) is becoming gentrified and that's going to be a tough nut to alter.

HillaryBriss 7y ago
another interesting area: regulations on building which drive the costs upward. case in point: Los Angeles requires that new construction include parking for a certain number of cars per housing unit. usually this means placing the new building on top of a subterranean parking structure, which costs a lot more than a building on a normal foundation. and new construction must also include a certain amount of outdoor space per unit which also reduces the number of units which can be built into a given lot. all of this overhead is passed along to new tenants/buyers.
- just_myles 7y ago
  I was at a city council meeting for my specific city and that requirement for parking spaces per unit does not fully support all tenants. So street parking goes way up on a traditionally quiet street. It happening more and more as they start erecting these new "luxury" apartments.

HillaryBriss 7y ago

another interesting area: regulations on building which drive the costs upward. case in point: Los Angeles requires that new construction include parking for a certain number of cars per housing unit. usually this means placing the new building on top of a subterranean parking structure, which costs a lot more than a building on a normal foundation. and new construction must also include a certain amount of outdoor space per unit which also reduces the number of units which can be built into a given lot. all of this overhead is passed along to new tenants/buyers.

just_myles 7y ago
I was at a city council meeting for my specific city and that requirement for parking spaces per unit does not fully support all tenants. So street parking goes way up on a traditionally quiet street. It happening more and more as they start erecting these new "luxury" apartments.