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The argument of the empty apartments in Berlin comes up all the time, but it is a myth. Maybe in London it is different, for various reasons, but in Berlin, tha

The argument of the empty apartments in Berlin comes up all the time, but it is a myth. Maybe in London it is different, for various reasons, but in Berlin, that is not the reason for the issues. [1] Even if only new luxury apartments are being built, it is more housing that takes pressure off the market. The wealthy people can move into those apartments, freeing their old less luxurious apartments for "poorer" people. And there is no "free market" for housing here - it is very difficult to build, with lots of regulations. And who wants to invest, when the government will seize your assets as soon as you are successful? Last year they introduced a hard cap on rents, that applied no matter how much you paid for the house you wanted to rent out, and no matter where it was located. In two weeks, there will be a public vote to seize thousands of flats at "way below market value" (quote from the voting sheet) from corporate landlords. These are not conditions where a "free market" can do its thing. As a matter of fact, only big companies have the means to build under such conditions, it is much too risky for smaller entities. But then, sure, blame the evil capitalists for the issues your socialist government has created. [1] https://www.tagesspiegel.de/berlin/wohnungsnot-leerstand-in-berlin-alles-spekulation/22590984.html https://www.tagesspiegel.de/berlin/wohnungsnot-leerstand-in-...

shkkmo 5y ago
> Even if only new luxury apartments are being built, it is more housing that takes pressure off the market. Luxury housing construction can help, but can't really fix the issue on its own because it is also a relatively inefficient and expensive method of increasing the housing supply (since each added unit has high costs.) This problem is one that a large number of municipalities have failed to solve. It seems very difficult to get the regulatory and tax incentive structure setup just right to get sufficient affordable housing built in large urban areas. > As a matter of fact, only big companies have the means to build under such conditions, it is much too risky for smaller entities. I would think that governments have the scale to take on those risks as well. At some point, I think it makes sense to stop struggling to get privately build affordable housing and do it publicly.

shkkmo 5y ago

> Even if only new luxury apartments are being built, it is more housing that takes pressure off the market. Luxury housing construction can help, but can't really fix the issue on its own because it is also a relatively inefficient and expensive method of increasing the housing supply (since each added unit has high costs.) This problem is one that a large number of municipalities have failed to solve. It seems very difficult to get the regulatory and tax incentive structure setup just right to get sufficient affordable housing built in large urban areas. > As a matter of fact, only big companies have the means to build under such conditions, it is much too risky for smaller entities. I would think that governments have the scale to take on those risks as well. At some point, I think it makes sense to stop struggling to get privately build affordable housing and do it publicly.