This is not how it works. Without the possibility to rent out or consolidate homeownership, the inflationary pressure on home prices collapses.
You create an insane level amount of supply for homeownership on this market. An absolutely insane level.
Indeed, the vast majority of increase in housing prices is because rents are so high that 7% YoY returns are possible. Without these returns, then there is no way to justify inflation in housing prices for simple homeowners.
If somehow millions of people do buy houses in Berlin, then you build public housing to undercut the price of housing.
The idea that your scenario will happen is not really rooted in fact. To me, it seems like a way to rationalize the principle that rent control must always fail - whereas in the real world it doesn't, see Vienna.
Homeownership in Berlin is very low, at 17% or so. The absolute majority of the housing market is based on renting out units. Before saturation of homeownership happens, a gulf remains.
You create an insane level amount of supply for homeownership on this market. An absolutely insane level.
Indeed, the vast majority of increase in housing prices is because rents are so high that 7% YoY returns are possible. Without these returns, then there is no way to justify inflation in housing prices for simple homeowners.
If somehow millions of people do buy houses in Berlin, then you build public housing to undercut the price of housing.
The idea that your scenario will happen is not really rooted in fact. To me, it seems like a way to rationalize the principle that rent control must always fail - whereas in the real world it doesn't, see Vienna.
Homeownership in Berlin is very low, at 17% or so. The absolute majority of the housing market is based on renting out units. Before saturation of homeownership happens, a gulf remains.