Berlin is grappling with a severe housing shortage, akin to issues seen in other major cities. With over 2 million apartments registered by the end of 2024, only a small increase of 15,362 new units was recorded that year. This reflects a 4% decline in construction compared to the previous year, as city authorities and residents continue to protest against development initiatives. The city's housing situation is dire, missing tens of thousands of units, which raises the question of whether effective solutions will be implemented.

The local government, comprised of a coalition between the CDU and SPD, acknowledges the problem and is attempting to ease construction regulations through the Schneller-Bauen-Gesetz (Fast Building Law). However, the prevailing discussions are shifting away from constructive solutions and towards proposals for expropriating larger private landlords. This indicates a preference for rent caps and regulatory measures over increasing supply, which could potentially exacerbate the housing shortage in the long term.

The implications of this approach are significant; as housing demand continues to grow, capping rents and pursuing expropriations may deter private investment in new housing projects. Real estate developers might find Berlin less attractive, leading to further stagnation in the housing market. The city must balance the demand for affordable housing with the necessity of fostering an environment conducive to building new properties to ensure its residents have access to adequate living spaces.