Berlin Will Freeze Rents for Five Years


City Lab has the article Berlin Will Freeze Rents for Five Years.

My first reaction may come from my capitalist indoctrination, tempered by my acceptance of Democratic Socialism.

Wouldn’t government building and renting out housing do more than rent control? Rent control tends to stop private investment in housing. Of course private investing in housing that makes the most profit is probably not what the city needs.

The following excerpt from the article seems more in line with what I think might be the better idea. If renationalization is what is being considered, perhaps this implies that there was a period of privatization that was the failed policy that lead to the current problems.

In a city where even relatively wealthy, well-connected people rent, this has led to a growing popular movement for greater collective control of the housing market. Berlin is already being swept by a campaign to renationalize former public housing blocks

The above link leads to the article Berlin Builds an Arsenal of Ideas to Stage a Housing Revolution
.

For decades, the state has sold off much of its public housing. Now, Berlin seems to be deciding that its housing market is broken, and that the private sector alone will not fix it.

As I have come to realize, there are certain needs that are not best served by a profit-driven system. If public housing has failed in the past, then we need to understand those failures, and try to prevent them. Privatization was not a solution that worked in many cases.

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