Berlin faces a critical housing shortage, echoing challenges seen in other major cities, but the approach diverges significantly. With over two million properties, the city saw only a slight increase of 15,362 new homes in 2024, representing a 4% decrease compared to the previous year. This limited growth occurs amidst protests from citizens and tough bureaucracy, highlighting a frustrating paradox where even small increments in housing development are celebrated amid the ongoing crises.

Compounding the issue is the estimated shortfall of tens of thousands of residences, leading to calls for solutions that prioritize construction rather than punitive measures against private landlords. The state coalition of CDU and SPD has introduced the Schneller-Bauen-Gesetz to expedite building processes, which shows some progress in the right direction. However, discussions are veering towards radical solutions like the expropriation of larger private landlords, which raises significant concerns about the implications for investment and the overall housing market.

In essence, while attempts to address the pressing housing needs in Berlin are being made, the imbalance between demand and supply continues to fuel divisive policies. Instead of fostering a conducive environment for new builders and developers, the focus has shifted towards limiting the profits of existing investors, which may only serve to exacerbate the crisis in the long run by discouraging new construction investments that the city critically needs.