German States Push for Extension of Rent Control Measures to 2029

With the housing market under strain, states advocate for extending the rent cap policy, while uncertainty looms over federal approval.

Several German states, including Hamburg and Lower Saxony, are urging a federal extension of the rent control policy until 2029 to protect tenants from steep price increases.
The rent control measure limits new rental contracts to a maximum of 10% above the local average rent in designated high-demand areas.
The current policy is set to expire by the end of 2025, with some state-level measures ending even earlier unless renewed by federal legislation.
The federal cabinet plans to propose an extension through 2029, but the lack of a parliamentary majority for the governing coalition casts doubt on its passage.
States are preparing a separate legislative initiative via the Bundesrat, aiming for a vote on December 20 to ensure continuity of protections for tenants in strained housing markets.