For years, Berlin’s rental market has been going berserk. Over the last 10 years, the cost of rent has doubled! Yet in the same period of time, wages have hardly risen. That is why more and more people are affected by displacement. With our petition for a referendum, we seek to end the rental insanity.
So that Berlin stays a city for all!
But there are even more good reasons for our petition.
Real estate companies like Deutsche Wohnen, Vonovia and Co. trade our apartments on the stock exchange. Their business model is based on speculation: Berlin’s increasing housing shortage secures their profits.
Out of each month’s rent, the average Deutsche Wohnen renter pays 177 Euros straight into the wallets of shareholders.
By way of socialization, the rent can be lowered for over 240,000 apartments. Because the profits of Deutsche Wohnen and Co. would no longer come out of the rent, only the actually arising costs. These drops in rent would in turn have a major influence on the rest of the rental market.
Milieuschutz (milieu protection)? Mietpreisbremse (rent control)? Mietendeckel (rent cap)? For years, politics has reacted with half-hearted measures, which only work for short periods of time. Meanwhile the rental insanity continues. Socialization puts an end to this: After being expropriated, the real estate will be democratically administered for the good of the community.
Most of the buildings owned by Deutsche Wohnen & Co. used to belong to the State of Berlin. They were built and paid for with our money! Yet the Berlin Senate hawked these properties to private real estate companies for laughable prices. Our petition will reverse this error! Through the expropriation of major real estate companies, Berlin will return to the hands of Berliners.
Major private real estate companies hardly build any new apartments. The business model of Deutsche Wohnen & Co. consists in buying up existing apartments and then raising the rent. Affordable living space is created primarily by public housing construction companies. Through socialization, a large, common interest-oriented housing company will come into being. This will have the power to foster new construction with a social purpose.