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What happened with rent control in Berlin? Rent control sounds like a good idea in theory but in practice it seems the opposite, creating two tiers of renters.
by collyw 6y ago
What happened with rent control in Berlin?
Rent control sounds like a good idea in theory but in practice it seems the opposite, creating two tiers of renters.
- llampx 6y agoThey introduced the Mietendeckel law last year, which solidified the two tier system for renters. If you had a good rent contract in a central location, you were sitting pretty and could probably count on a decrease in rent. If you had done the responsible thing and rented in a further away location, no such luck. If you are looking for an apartment now, supply has been dramatically reduced. Great for the haves, not so much for the have nots.
- imtringued 6y agoRent control is a bad idea in theory as well. A theoretical solution to the problem that can deliver the promises of rent control is if the government guarantees housing for the desired price. The reason why it works is because the government is forced to change laws that prevent the construction it just promised. It's about accountability rather than the promise itself. The reason why rent control doesn't work is because the government can enact or keep laws that restrict the supply of housing. There is no accountability. It's actually equivalent to censorship. If you want the housing market to look good, just ban bad news (high prices).