shows capitalism the middle finger. This Sunday, the capital’s residents will vote on. It would be unique in the history of the Federal Republic of Germany if the referendum actually passed – even if politicians were not forced to actually implement this vote.
What sounds like a scene from the gloomy GDR times is widely accepted in the 21st century. In the red-red-green ruled country, the citizens are now ready for almost anything. Sure, living in Berlin is too expensive. Even high earners have to raise large parts of their income in order not to have to stay in a shabby toilet.
But the undermining of our basic market economy will not eliminate the housing shortage. The comrades can still shout slogans like “No return on rent” or even set company cars on fire. If the citizens’ initiative “expropriate Deutsche Wohnen und Co.” goes, corporations with more than 3,000 apartments are to be socialized. That would completely turn the Berlin real estate market upside down. And above all: deter investors.
Which investor would come up with the idea of building in Berlin if the expropriation should actually be implemented? The expropriation of real estate companies would not create a single new apartment, and worse: it destroys all incentives for investors to even become active there. Especially when the citizens’ initiative gets away with its proposal to set the rental price per square meter at 4.04 euros.
Social romantic vision
The aim of the initiative is to transfer the apartments to an institution under public law – consisting of tenants and the city. But this socially romantic vision is likely to fail because of reality. There are great doubts as to whether municipal institutions that collapse with the allocation of online appointments in the citizens’ office can actually manage the management of hundreds of thousands of apartments.
In addition: recent history has shown that socialist activities do not solve the tense situation on the Berlin housing market. Take the rent cap, for example: Existing tenants may benefit from lower rents. On the other hand, the rent cap made the situation worse for all those who were looking for an apartment. Because renting apartments became unattractive,.
Even expropriation would be nothing more than a populist placebo, a cry for help from an angry population who can no longer afford to live in their own city. Socialization would not solve problems. Instead of grooming the housing corporations, which are sure to have to put up with criticism because of the living conditions in some complexes, citizens should direct their displeasure primarily against politicians.
This is of particular interest to WiWo readers today
Because she slept through the housing shortage for years. Too few new apartments are being built, the number of social housing is falling and the administrations are daunting with building permits. For the Bundestag election, of course, the parties will again vow to step on the accelerator. And in addition to the usual thrashing of phrases, politicians are toying with further regulating the housing industry. So it will certainly not be with affordable housing.
On September 26th, Berlin will vote on the multi-billion dollar expropriation of housing corporations. .