Berlin Caps Rent Prices, Makes All of Australia Jealous

Anyone who’s dreamed of spending a summer living in Berlin has just gotten some added incentive. The German capital has officially enacted new rent-control legislation, in order to curtail rising rental prices that have been driving low-income earners out of the city. Must be nice.

The new law, which was approved by the German parliament in March, will prohibit landlords from increasing rent to more than 10 percent above the local average. The law was already in place for existing contracts, but will now apply to new tenants as well. Berlin was previously experiencing some of the fastest rising rental rates in Europe, with the average rate jumping by more than 9 percent between 2013 and 2014 alone.

If you’re wondering why Australia doesn’t have similar legislation on the books, then welcome to the club. A recent global survey that took into account rental prices as well as various other cost of living factors including food, transport and utilities found that Sydney was the fifth most expensive city in the world, with Melbourne right behind at number six. Brisbane came in at 21, while Perth and Adelaide tied at 24. By comparison, New York City was number 26. That’s right. Living in New York is less expensive than Perth.

The NSW Greens Party actually proposed changes to Sydney rental laws during their state election campaign earlier in the year. Under their proposal, rises in rent would be tied to the rate of inflation, and landlords would be restricted to one price increase per year. Member for Newtown Jenny Leong has pledged to introduce the legislation to the state’s lower house. In the meantime, Flight Centre has tickets to Berlin starting at $1499.

Via The Guardian.

Image: Dollar Photo Club.