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Pekka Sagner / Michael Voigtländer in International Journal of Housing Policy External Publication 6. May 2022 Supply side effects of the Berlin rent freeze

On 23 February 2020, the Berlin Senate introduced the Berlin rent freeze (‘Mietendeckel’). The law was repealed on 25 March 2021. The Berlin rent freeze was an unprecedented market intervention in the German housing market.

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Supply side effects of the Berlin rent freeze
Pekka Sagner / Michael Voigtländer in International Journal of Housing Policy External Publication 6. May 2022

Supply side effects of the Berlin rent freeze

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German Economic Institute German Economic Institute

On 23 February 2020, the Berlin Senate introduced the Berlin rent freeze (‘Mietendeckel’). The law was repealed on 25 March 2021. The Berlin rent freeze was an unprecedented market intervention in the German housing market.

We analyse how the rent cap part of the legislation which fixed rents at below market levels affected the supply side in the short term. We find rent decreases accompanied by decreases in supply five times as large. We further investigate spillover effects on the purchase market, regionally heterogeneous effects as well as different effects by dwelling characteristics. We find the rent freeze did not have spillover effects on dwellings for sale which point to a ‘wait-and-see-attitude’ on the investors’ side. We make use of a rich dataset of real estate advertisements and employ hedonic difference-in-difference and triple-difference estimation strategies.

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Supply side effects of the Berlin rent freeze
Pekka Sagner / Michael Voigtländer in International Journal of Housing Policy External Publication 6. May 2022

Supply side effects of the Berlin rent freeze

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German Economic Institute German Economic Institute

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How the Berlin Rent Cap Affected Private Landlords
Pekka Sagner / Michael Voigtländer IW-Trends No. 3 20. August 2021

How the Berlin Rent Cap Affected Private Landlords

The effects of the Berlin rent cap on the city’s housing market were wide-reaching, with the supply of rental accommodation falling by more than half while the cap was in force.

IW

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Pekka Sagner / Maximilian Stockhausen / Michael Voigtländer IW-Analyse No. 136 21. July 2020

Housing – the new social question?

The sharp rise in rents and housing prices in the 2010s, particularly in the major conurbations, has led some to assert that housing is “the social question of our time”.

IW

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