Rent control Europe: Germany

Population: 81,770,900 GDP: $3,467,780,000,000 Avg. Weekly Earnings: €962.00 Avg. Apartment Price (Per. Sq. M.): €4,078.00 For 120-sq. m. apartment in city centre Avg. Monthly Rent: €830.78

German rent control systems are often heralded as a solution to the problem of unaffordable housing. Germany boasts the strongest economy in the European Union and, despite experiences difficulties of its own during the economic contraction of 2008, has been rapidly recovering to pre-recession levels.

Among the countries we have analysed, Germany is the most receptive to tenant-friendly legislation; German home-ownership is the second-lowest in the European Union, at 52.5% in 2014[1], and as low as 15% in municipalities like Berlin.

Historically, property prices have risen very slowly in Germany, removing one of the primary motivations for buying a home: hedging against rising future rents. To compound this, German banks are notoriously risk-adverse, and these stringent lending practices protect the housing market from financial market distortions, reducing the risk of default and providing market stability.

According to the OECD Better Life Index, 93% of Germans are satisfied with their current housing situation[2], which has …

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