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0 pointslooping__lui2y ago0 comments

Rent control in Germany also fixed the housing shortage and creates great incentives for new construction. In 2022, Germany had a record in new apartment and buildings finished - 2023 will probably even better. The new ECB interest regime of 4+% actually had very limited effect on the market in this respect thanks to rent control.

Like honestly, rent control is just beyond dumb. There are like 1000 ways that actually solve the problem - but unfortunately they require cities and bureaucrats to work instead of just passing a law. Supply and demand. If it takes LONGER to get a building permit that to actually build a housing complex… When cities are not planning ahead creating new space (argh, infrastructure, public transportation, this sounds like work…

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em-bee2y ago

i am a bit confused. rent control in germany works, but then you are arguing against it?

actually i disagree that simply allowing to build enough property will work. businesses tend to charge as much as they can, and if we want actual competition in rent prices, then the supply would have to vastly exceed the demand and not just meet it. with all the best intentions, that is not going to happen, and i don't think it is desirable either.

excessive prices need to be prevented either way.

unmole2y ago

The comment you are replying to was sarcastic: https://www.businesswire.com/news/home/20230126005862/en/Ger...

> and if we want actual competition in rent prices, then the supply would have to vastly exceed the demand and not just meet it.

So, having less than 1% of the housing stock go to AirBnB supposedly makes cities unaffordable but increasing the supply of housing will not have the opposite effect until supply greatly exceeds demand? Why?

em-bee2y ago

because prices aren't lowered until there is pressure to do so. and that won't happen until enough properties remain empty that it starts to cost money. as far as i can tell, the preference currently is to leave properties empty instead of renting them out at low prices, so all creating more supply will do is to create more empty properties, unless landlords are literally forced to rent them out at lower prices.

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0 pointslooping__lui2y ago0 comments

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em-bee2y ago

i am a bit confused. rent control in germany works, but then you are arguing against it?

excessive prices need to be prevented either way.

unmole2y ago

The comment you are replying to was sarcastic: https://www.businesswire.com/news/home/20230126005862/en/Ger...

> and if we want actual competition in rent prices, then the supply would have to vastly exceed the demand and not just meet it.

em-bee2y ago

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