Rent control is not boosting new housing construction


The rent control regulation introduced in 2015 is not showing any effect on new housing construction. This is the result of an empirical study published by the German Society for Real Estate Research (gif). The rent control law included an exception clause for new construction that was intended to provide incentives for building new residential space. “The data contains virtually no indications that housing construction was noticeably affected by the rent control law,” the study states. There are, however, slightly positive impacts detected in terms of buildings measures on existing properties of public builders. In 2016, communities with rent control completed about four apartments more than comparable communities without rent control.

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