Berlin Fought Soaring Rents and Lost | Hacker News Reader

Berlin Fought Soaring Rents and Lost

wsj.com

3 pointsisolli10 comments

Other things being equal, more construction will lower rents. Has Berlin encouraged construction? If rents rise because a city is a great place to live, there may be no problem to solve.

The highest-density places, i.e. the ones with the most construction, tend to also have the highest rents, so empirically, the opposite of your claim is true.

I think the reason for this is that high rents stimulate construction. If you do a bivariate time series analysis with annual average rents and construction levels, I don't think you will find that increased construction raises rents.

I invest in real estate investment trusts (REITs). Analyst reports on apartment REITs project future rents inversely based on construction. Analysts believe that more apartment construction tends to lower rents.

https://nlihc.org/resource/new-construction-has-mixed-short-... found new construction to have a negligible effect on the rents of high-tier buildings, and to increase the rents of low-tier buildings.

This is not too surprising, but may be specific to large and/or lax-on-immigration countries such as the US. It may look like an inversion of supply-and-demand, but the problem is the demand is essentially infinite compared to the change in supply that new construction brings. Without limiting new arrivals, all you've done is increased the desirability.

Like trying to reduce the relative amount of theft by increasing your inventory.

I don't think this assumption is always true.

For example, Estonia has been building many new dwellings, but prices are increasing incredibly, while a quarter of buildings stay unoccupied[1].

[1]: https://news.err.ee/1608648397/statistics-almost-a-quarter-o...

Too many people want to move to Berlin, from wherever they lived before. Because where they lived before does not offer people what they need and want.

To solve the housing crisis in Berlin, Germany must put in a lot of work to make other cities and towns attractive.

Berlin didn't care enough. Too many people just want to bang and be on stage or sit in front of it. Not wanting to change anything is a cool attitude among kids. Their parents and teachers did exactly as the system wanted them to. And the current gen. of teachers and parents is exactly the same.

It took a while to understand, but the simple truth is post-racism: the corrupted market determines the peoples value.

You can't afford an apartment because you are not running trackers and advertisements on your website, your body and in your lifestyle in general. Obey.

New money people and old money people share one thing: capitalism at all cost in their genes. And the group is big and strong enough to sanitize all guilt, which isn't even necessary because the dancing mob will go to that festival anyway and dancing people are never wrong.

Fuck the haters and throw the realists and super-rationalists in the same grave. Plant some concrete flowers on top. The soil is fertile from all the decomposed rebels and freedom fighters.

Eat and wear vegan from time to time and have a healthy sex life and all will be perfectly splendid.

Nice poetry ...

Fabulous cynism :-)

You're oh so fkcing right it's not even funny :-/

These lines have their own charm.

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