The study "Assessment of possible effects of new rent regulations on the rental housing market in Germany" by the Institute for Economic Research (DIW Econ) deals with planned rent regulations and their effects on the local housing market. For the study, DIW compiled party positions of the SPD, Bündnis 90/Die Grünen, Die Linke and the Berlin state government with regard to their housing policy plans and evaluated them, for example, in relation to the tenant ratio. The study was commissioned by the homeowners' association Haus & Grund Deutschland.
Above all, the results of the study show that a decrease in available rental housing is to be expected if the government regulates the housing market more strongly. Landlords of owner-occupied apartments would have less influence on their apartment rents due to the imposed rent brakes, which would result in lower revenues. According to the study, this would make the rental market less attractive and profitable for owners. It would be expected that some of the owners would sell their rental apartments as condominiums or use them for other purposes.
On the other hand, tenants would remain in their existing apartments for as long a period as possible. Probably even if their family situation changes. This would also have the effect of reducing the supply on the rental housing market, also on the part of tenants. High-income families would consider buying an apartment. Lower-income families who, for example, had to change their place of residence would have difficulty finding a new apartment and would have to move to the surrounding area. According to the study, the German housing market would also have the highest regulatory intensity in an international comparison if the parties' planned projects were implemented.
Source: Haus & Grund/DIW
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