Pursuits
Berlin’s Landlords Rebelling as ‘Nonsense’ Law Threatens Returns
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Until last week, Thomas Groth had no trouble finding young couples to pay 715 euros ($780) a month for a one-bedroom apartment on Rauchstrasse, a quiet, tree-lined street in Berlin’s embassy district. Next time he signs a lease, he’ll have to charge 40 percent less.
Berlin has a new law prohibiting landlords from demanding rents that are more than 10 percent higher than the area average, in an attempt to keep housing affordable in a city that’s attracting 50,000 new residents a year. The rule relies on a disputed index -- known as the Mietspiegel -- that critics say is a statistical crapshoot.