[woodpanel]

> Gentrification is generally great for the owner and terrible for the renter.

Well not entirely.

Gentrification is started and driven by new groups of tenants moving into a neighbourhood. Property owners and investors will only jump onto the bandwagon afterwards. With German restrictions on rent-increases, being one of those original gentrificators (OG) you can lock in an incredibly low rent in a place where rents for new leases skyrocket. As long as you stay in your flat, you're shielded from those rent-hikes.

Growing up, I've had many friends who lived literally in city mansions (4m++ ceiling height, art deco, 6-10 rooms for a family of three) in a fully gentrified area paying a rent lower than I paid for my no-go-area 25sqm studio. All because their parents kept the lease from their 1970s flatshare (pre-gentrification, no-go-area then).

Today even more than 20yrs ago, those OGs often live in an opaque, inaccessible grey housing market: If they want to move (because e.g. the 6 people they share a flat with became 1 spouse and a kid), they first look out for other OGs to do a lease-switch. Which means their rent level stays pre-gentrification forever. If nothing comes across they can still "resell" the lease.