The capital city, known for its artists and party scene, is aiming to reduce gentrification by capping rent prices for a period of five years.
"Rental prices on more than 1.5 million Berlin apartments will be frozen or lowered for five years as a result of new legislation aimed at halting a recent spike in rents that is driving out older and lower-income residents," reports Melissa Eddy.
"The new law caps most rents in the city at 2019 levels and limits the amount that can be charged based on the apartment’s condition and amenities," according to Eddy.
Berlin is populated mostly by renters, according to the article. Only 18 percent of residents own homes.
The new rent control cap has sparked fierce debate in Berlin—the government currently running the city is leftist, but the conservative political faction in the city has threatened to challenge the law. The debate is similar to the one taking place in the United States as rent control gains popularity as a tool for controlling housing costs in a housing market defined by soaring rental prices.
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