Berlin: Rents are going up twice as fast as consumer prices.

Berlin is facing a shortage in housing, consequently the rents are going up. What could be the solution? Again public construction? Wasn't it just a couple of years ago that the Senate demolished housing blocks? Now they could be used again. At least investors are happy. They can choose from a - sometimes long - list of applicants for a flat in the center of Berlin. What will happen to those living from welfare? Will they not find a place anymore? At least, this is sure, not in the center. 

In many other cities this is not unusual, but Berlin is not used to such a situation. It is famous for cheap housing for everybody, for being gentle to the poor and the creative. Does this mean that Berlin has finally arrived in the club of serious world capitals? Yes. Also. And it will create an explosive social climate. The less wealthy are pushed towards the suburbs. Even if the whole situation means that Berlin is becoming richer (since it is becoming for the rich as it seems), it will take a long time until the poorer districts will benefit from this development. 

In my opinion, investing in social peace is always worth it on the long run. And cheaper. But we need the real estate investors, too. Berlin owes THEM a big portion of the the positive change of the last 20 years. Most of them came from abroad and saw something that many Germans did not dare to dream of. They should be honored and not condemned.

What do you think the Senate should do about it? Please leave your comments.