Germany Extends Ineffective Rent Control Amid Housing Crisis

The German government has agreed to prolong the rent cap until 2028, despite criticism that it fails to address key issues in the housing market.

The rent control extension aims to limit rent increases to 10% above local averages for new leases, but critics argue it has too many loopholes.
Exemptions for new builds, major renovations, and furnished rentals allow landlords to bypass the rent cap, causing continued price hikes.
The coalition government faces internal disagreements, particularly between the SPD, Greens, and FDP, hindering more comprehensive tenant protections.
Housing advocates criticize the lack of progress on other promised measures, such as lowering the cap on existing rent increases and improving eviction protections.
Experts suggest that increasing housing supply through new construction would be more effective in stabilizing rents than the current rent control measures.