Berlin approves 5-year rent freeze
reuters.com
Berlin approves 5-year rent freeze
1–10 of 594 posts
Re: Berlin approves 5-year rent freeze
#2Well, at the very least, will be an interesting economic experiment.
Re: Berlin approves 5-year rent freeze
#3As a person born and raised in Soviet Union, I strongly believe that whoever thinks that a proper economic response to raising prices is literally to order them to stop raising, is a lunatic.
Re: Berlin approves 5-year rent freeze
#4Symptom: rents are too high
Cause: insufficient housing supply
Solution: disincentivize new construction?
Re: Berlin approves 5-year rent freeze
#5As a person born and raised in Soviet Union, I strongly believe that whoever thinks that a proper economic response to raising prices is literally to order them to stop raising , is a lunatic.
Genuinely curious: what do you think would be a better response?
Re: Berlin approves 5-year rent freeze
#6Symptom: rents are too high Cause: insufficient housing supply Solution: disincentivize new construction?
Nope. New buildings are exempt.
Re: Berlin approves 5-year rent freeze
#7Well, at the very least, will be an interesting economic experiment.
This has been tried before in a number of different flavors. Most leave people worse off.
https://www.bloomberg.com/opinion/articles/2018-01-18/yup-re...
Re: Berlin approves 5-year rent freeze
#8Symptom: rents are too high Cause: insufficient housing supply Solution: disincentivize new construction?
This would only be true if rent wasn't already (relatively) way above the cost of new construction and if the freeze applied to new buildings too.
Re: Berlin approves 5-year rent freeze
#9I'm so ashamed of german politics of late. We're becoming the country where Homeopathy is GAINING popularity, where policy is increasingly symbolic in the good case, outright ideological in the worst case.
It's really at the point where I don't want my kids growing up here anymore, problem is, where else?
Re: Berlin approves 5-year rent freeze
#10As a person born and raised in Soviet Union, I strongly believe that whoever thinks that a proper economic response to raising prices is literally to order them to stop raising , is a lunatic.
Genuinely curious: what do you think would be a better response?
Raising prices = Demand > Supply. You can either try to curb the demand (by e.g. creating incentives for companies to build offices elsewhere, move government bureaucracy somewhere else, etc.) or improve the supply by facilitating new construction, which in most places on earth is limited by, again, local government restrictions.
edits: grammar