Politics · Germany · 15 hrs ago
Berlin parties back housing-company expropriation and rent-cap powers
In Berlin coalition talks, Die Linke, the SPD and the Greens agreed to pursue expropriation of housing companies with at least 10,000 homes.
The proposal would affect about 160,000 homes, and the parties also want states to be able to introduce rent caps.
Berlin tried a rent cap in 2020, setting legal limits on rents and requiring some landlords to lower them.
A study by economist Pekka Sagner found that rents fell by 10.3 percent, but the number of rental homes offered also fell by 52 percent.
The debate echoes East Germany’s long history of controlled rents, which the commentary says left many homes in poor condition by 1989.
After reunification, tax incentives and other support helped draw private investment into building and renovating homes.
The parties’ proposals are part of coalition talks, and the available information does not say what happens next.
The Social Democrats, Left Party and Greens have agreed in exploratory talks to seek powers for states to introduce rent caps.
They also agreed that housing companies with at least 10,000 homes should be expropriated.
The proposal would affect about 160,000 homes, according to WirtschaftsWoche.
The article argues that rent caps can reduce rental supply, citing Berlin’s previous rent cap.
Economist Pekka Sagner’s research found that Berlin’s rental-home supply fell by 52 percent during that cap.
- Who
- The Social Democrats, Left Party and Greens agreed on the proposals.
- What
- They backed expropriating housing companies with at least 10,000 homes and enabling states to introduce rent caps.
- When
- The agreement was reached during exploratory talks, reported on 24 October 2026.
- Where
- Berlin; the proposed rent-cap powers would apply to Germany’s states.
- Why
- The parties say they want affordable housing. WirtschaftsWoche says the proposals rest on the view that public housing and rent caps can address housing problems.
Social Democrats, Left Party and Greens
WirtschaftsWoche article author
Housing policy
Social Democrats, Left Party and Greens
The parties agreed to pursue expropriation of large housing companies and powers for states to introduce rent caps.
WirtschaftsWoche article author
The author argues that these policies risk worsening housing shortages.
Rent caps
Social Democrats, Left Party and Greens
The parties support giving states the ability to introduce them.
WirtschaftsWoche article author
The author cites research finding Berlin’s rental-home supply fell by 52 percent during its earlier rent cap.
Berlin’s then governing coalition introduced a rent cap.
WirtschaftsWoche reported that the Social Democrats, Left Party and Greens had agreed on expropriation and rent-cap proposals in exploratory talks.
- Expropriation threshold
- Housing companies with at least 10,000 homes
- Homes affected
- About 160,000
- Previous Berlin rent cap
- Introduced on 23 February 2020
- Rental supply change
- Fell by 52 percent during the Berlin rent cap, according to research cited by WirtschaftsWoche
- Researcher
- Pekka Sagner, an economist