"“The rent ceiling is very important for Berlin because the difference between the rent paid in existing contracts and new contracts is so high,” said Reiner Wild, managing director of the Berlin Tenants’ Association. “The other problem is that we have 40,000 more inhabitants per year. Because of this situation the housing market is very strong.”"
The incentive to build new rental housing will evaporate, and people who move there will not be able to find apartments. The problem isn't that your rents are increasing too quickly, the problem is that your economy is unbalanced and you're creating housing demand faster than you can provide it. Correct response? Either increase the number of new apartments being built or slow or stop the number of companies that are allowed to locate in Berlin.
This has happened before, will happen again. So take a moment and look at the environment around Berlin for housing now, and wait 10 years. Then look again and ask yourself is housing better or worse in this city?
"“The rent ceiling is very important for Berlin because the difference between the rent paid in existing contracts and new contracts is so high,” said Reiner Wild, managing director of the Berlin Tenants’ Association. “The other problem is that we have 40,000 more inhabitants per year. Because of this situation the housing market is very strong.”"
The incentive to build new rental housing will evaporate, and people who move there will not be able to find apartments. The problem isn't that your rents are increasing too quickly, the problem is that your economy is unbalanced and you're creating housing demand faster than you can provide it. Correct response? Either increase the number of new apartments being built or slow or stop the number of companies that are allowed to locate in Berlin.
This has happened before, will happen again. So take a moment and look at the environment around Berlin for housing now, and wait 10 years. Then look again and ask yourself is housing better or worse in this city?