This came up this week, as the Green Party is talking over agenda items, and presented this idea that the federal government, with the Green Party running things....could freeze all rent in Germany for SIX years.
I sat and pondered over this.
First, it'd be challenged in court, and I seriously doubt that the Constitution would allow this type of situation to occur.
Normally, what you see is that a new guy moves in at a set-price, and he can feel fairly sure that the rent won't change for a period of ten years, and then it'll be a 15-odd percent rise to occur (especially after some renovation occurs).
In some major cities now (like Berlin or Hamburg).....you might see rent escalation going on every three to four years. That's what drew that Berlin city law (pushed locally) to freeze rent within the city to every five years (it was challenged).
If this Green agenda were to occur? I would suggest that you'd see a rapid decline in new rental properties being built and condo construction would be the primary focus.
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