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by gltchkrft
2159 days ago
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When prices are capped, it's not like supply increases, so in practice you end up with waiting lists that can be several months to years long. I knew people who moved from Stockholm to Berlin and kept on paying their rent in Stockholm, just so they don't lose their apartment. That's how hard it is to get one. Berlin also had a rent cap, so instead of competing on price, you had to compete on intangibles like: letters of recommendation from previous landlords, proof of income and good conduct, having a high-profile job, nationality, etc. Since supply is low, demand is sky-high and prices are capped, you had 30-40 people applying for the same apartment.
Add the fact that once a landlord takes you in, there is almost no way that they can kick you out and you will end up with a very complicated and long vetting process that doesn't exactly favor the working class folks. Also, you can end up with other costly requirements like: the landlord will only choose a tenant who buys all the furniture in the house. That's one example of an unregulated cost increase that is not affected by the rent cap. |
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However, it doesn't justify the runaway inflation of the entire housing market. Also, I'd point out that generally speaking, the population of an area will be limited by the jobs available in that area, so there is an external limit on the demand for housing to at least some extent. There are jobs and money to be made in development of additional housing to meet the demand. Supply issues are not insurmountable, and should be addressed as such.
I'll also note that in the USA, all of the "intangibles" you listed are already typically collected by the landlord along with the leasing application itself. This isn't a result of rent caps, just high demand and standard tenant screening practices.
To solve problems, you may actually have to try. Obstacles don't justify problems, they just need to be addressed.