Earlier quoted context omitted.
This is just literally privatizing the cost of reproducing the city onto its lowest paid workers, i.e., entirely regressive. Why should those guaranteeing the very basic functioning of a place (janitors, firefighters, nurses, etc) bear not only the burden of lower wages, but now also terrible commutes? There’s no sane logic behind this kind of sentiment besides “might makes right,” which is fueling the rise of “eat t…
Then it should be skilled, talented workers who should live in a place without public transport, buy expensive cars and gasoline and spend hours in traffic jams?
Berlin approves 5-year rent freeze
311–320 of 594 posts
Re: Berlin approves 5-year rent freeze
#312Earlier quoted context omitted.
As a person living in austria, I strongly believe that goverment build housing and strong regulation of pricing and the market is the only way to keep housing affordable for all people and not make it a speculation object like in germany/berlin. Did you know that in the late 90 the housing was good and affordable? And that a big chunk was owned by the city or state? That these things were then sold for pennies, to co…
goverment build housing Berlin government is not building housing in meaningful quantities to keep up with demand. You can look at BER (the airport that was supposed to open in 2012) to get an appreciation for how dysfunctional Berlin's regional government is. Berlin's NIMBY population is also to blame, they voted against developing former Tempelhof airport [1]. It would have been easy to erect dwellings for > 10k pe…
Re: Berlin approves 5-year rent freeze
#313Earlier quoted context omitted.
OK, then look at NYC in the 1970's. Severe rent control resulted in crumbling buildings. Price controls are bad policy.
NYC is in america which has a complete different economic Idea. While Germany was and sometimes still is a social market economy America is a full blown free markt, of course just slapping a rent control and nothing else is a bad idea
NYC? No, it's not a full blown free market by the very fact they have rent control.
Re: Berlin approves 5-year rent freeze
#314Earlier quoted context omitted.
> I found the situation in Berlin to be absolutely ridiculous. I totally agree with this assessment. I've never seen a city where you struggle to get a flat even if you have the money or can pay more. The market is absolutely broken with literally everyone competing for the same pool of flats.
I don't know, there's something utopian about what you describe. If the city doesn't have housing for everyone, why should the rich get it first? Leave capitalism at the door, we're talking about a roof over your head for janitors vs. business executives. If an 'ideal' free market means the rich get the houses and the poor are on the street, because developers don't have motivation to build, then I'm happy to see eve…
We're talking here about middle class people, your teachers, pharmacists, taxi drivers, clerks etc.
Re: Berlin approves 5-year rent freeze
#315If affordable housing is an issue, then perhaps the government should provide it for its citizens, like building huge high-rises in Berlin. I used to rent in an expensive city but bought a cheap house in the suburbs (thankfully I work remotely). Everything is cheaper out here, from gas to utilities to food. But I did experience classism from my friends and family: there is status living in a world-class city. And hav…
> Government should provide it for its citizens And how do you expect government to pay for that? How do you decide who lives in these houses? It's not that easy. Government isn't a magic entity.
Using a carbon tax to guarantee housing to citizens regardless of means, with development planned according to present and forecasted demand, could be this centuries guarantee of clean water or electricity.
Re: Berlin approves 5-year rent freeze
#316As much as I can sympathise with the predicament, this decision, and the Berlin housing market in general, absolutely baffles me. When I moved here I was warned of 100 people turning up to a flat viewing, and laughed it off as some hyperbole. Only later did I find out that it actually happens , albeit the maximum viewing I went to was around a meagre 50. Having come from the UK, I found the situation in Berlin to be…
Re: Berlin approves 5-year rent freeze
#317I think the main reason why this makes me so angry is because it's Berlin, again, doing something fiscally irresponsible that the rest of the country is going to have to finance in the long run. How I imagine it to go down would be like this: Today the politicians pat themselves on the back for their progressive stance on this topic. In year 2 of the rent freeze most of the property investment will have seized, new c…
What do you call the chicanery that companies like Vonovia are doing except evil speculation? Yes, heavy demand with slower increasing supply will result in higher prices, but we're talking about homes here, not iPhones. People can't afford a home any more, it's inhuman to just let them be bled dry or get kicked out in the name of real-estate profit. Your critique's puzzling especially because this law only applies t…
What these companies are doing is despicable, but how do you imagine this rent-freeze will change their behavior? They will go looking for their margins via other means if the market is the way it is right now.
>Your critique's puzzling especially because this law only applies to existing buildings
Do you really think that people will Invest in a real estate market that has legislature that is this investor hostile and face the risk of being outright disowned, as also has been proposed in the run-up to this?
I wouldn't touch the Berlin real estate market with a ten-foot pole after this.
Re: Berlin approves 5-year rent freeze
#318Earlier quoted context omitted.
Yeah, not everyone has to live in Berlin. Better that the current citizens have reasonable living conditions than everyone paying through their nose. Everyone knows about supply and demand, few know what the situation's like in Berlin or even care to find out before supplying us with economic platitudes for which there is little if any demand at all.
Better that the current citizens have reasonable living conditions... What makes current citizens more deserving than the people who want to live in Berlin but won't be able to due to policies which reduce the supply of housing?
AirBnB'ers and other speculators are of course not deserving at all.
Re: Berlin approves 5-year rent freeze
#319Earlier quoted context omitted.
It’s actually pretty simple: housing isn’t an investment vehicle like it is in many parts of the West. The social and historical reasons why this is so in Japan are complicated, but the overall circumstances are not. You can either have affordable housing that’s not an appreciating asset or let finance/real estate Capital run roughshod over everything in speculative flurries, leading to the insane state of affairs in…
I read today that Fortress Investments purchased over 100,000 affordable units from the Japanese government for 60bn JPY in 2017 and plans to spend about as much on renovation. [1] Apparently firms like this usually expect an 18% return on these kinds of investments. [1] https://www.wsj.com/articles/fortress-becomes-japans-biggest...
Re: Berlin approves 5-year rent freeze
#320As much as I can sympathise with the predicament, this decision, and the Berlin housing market in general, absolutely baffles me. When I moved here I was warned of 100 people turning up to a flat viewing, and laughed it off as some hyperbole. Only later did I find out that it actually happens , albeit the maximum viewing I went to was around a meagre 50. Having come from the UK, I found the situation in Berlin to be…