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Can socialization fix Berlin's housing crisis?

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Marie Joslyn
October 31, 2026

What if a city took tens of thousands of apartments away from corporate landlords? Berlin is debating exactly that. Supporters say it is the only way to stop soaring rents. Critics call it a dangerous step. Why?

Berlin's housing crisis has become one of Germany's most divisive political issues. After winning the Berlin election, the Left Party is pushing a plan to bring around 160,000 apartments owned by large housing companies into public ownership to help curb rising rents and give tenants greater security.

Supporters argue that previous housing policies have failed and that public control could make housing more affordable. Critics, including many economists and the leadership of the conservative Christian Democratic Union, warn the move will undermine property rights, deter investment, and fail to address the city's housing shortage.

Germany's constitution explicitly allows for socialization, though the measure has never been used before, and the level of compensation required remains hotly debated. However it works out, the proposal is set to reshape Berlin’s housing market for years to come.

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