Housing Market: The Federal Government Is Doing Too Little to Curb Rents
The commentary criticizes the German government for insufficient action to limit skyrocketing rents in major cities.
In Germany, the rental market is likened to a greenhouse, tightly controlled by political forces since the implementation of the Civil Code in 1900. The failure to manage this market effectively has led to unbearable rent increases in many large cities. The responsibility for addressing this crisis lies with the Bundestag, as they hold the regulatory power to make necessary changes.
The author, Ronen Steinke, points out that the current measures proposed by Justizministerin Stefanie Hubig are surprisingly mild, especially given the serious conditions renters are facing. With many struggling to afford housing, the commentary argues that the government's seemingly passive approach is inadequate. The contrast between the urgency of the situation in urban centers and the lack of robust policy responses underscores a significant challenge for the administration.
Steinke emphasizes that the control of rent prices is a political responsibility that the government must not take lightly. As the cost of living soars, especially in cities where housing is increasingly unaffordable, a stronger political will to enact comprehensive reforms and regulations is essential to protect tenants and ensure the housing market serves the population's needs effectively.