I wonder what the zoning laws are like in Berlin. Specifically, I wonder if zoning laws prohibit small homes that allow for pretty good high-density housing.
Such zoning laws could contribute to the high rents in the center of town.
In any case, this method is much better than rent-control. There is still then monetary incentive to skip on maintenance, but the institution should insulate from that. The biggest potential downside I see is a slowing of development in general. That might obstruct development of cheap rents more than it saves.
In general I wonder what prevents building higher, cause you can build high and cheap and if there is demand, why not?
In any case, this method is much better than rent-control. There is still then monetary incentive to skip on maintenance, but the institution should insulate from that. The biggest potential downside I see is a slowing of development in general. That might obstruct development of cheap rents more than it saves.
In general I wonder what prevents building higher, cause you can build high and cheap and if there is demand, why not?