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German housing market

2011 link: http://www.nakedcapitalism.com/2011/06/how-germany-achieved-stable-and-affordable-housing.html

Germany has a rental dominated housing market, with stable prices. Features:

* constitution protects right-to-build: if there's not an explicit rule against, you can build, no need for permission.
* local gov't gets grants based on # of inhabitants, so they have an incentive to encourage development.
* strong tenant protections, including what sounds like rent control, constrained rent increases. Between that and the majority doing it, renting is seen as a first-class choice.
* tight mortgage financing.

Article contrasts with the UK, with lots of fiddling restriction on building, deregulate and landlord-favoring market so renting is second-class choice, easy mortgage credit. Tight supply, easy credit, propensity to panic buying. So basically a factory for making market bubbles.

See the comment count unavailable DW comments at http://mindstalk.dreamwidth.org/476484.html#comments

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Damien Sullivan
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