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Fifty Shades of State: Quantifying Housing Market Regulations in Germany

Discussion Papers 1530, 59 S.

Konstantin A. Kholodilin


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The paper aims at measuring the rental housing market regulations in Germany between 1913 and 2015. Four classes of housing policy are considered: Rent controls, tenant protection, rationing of housing, and fostering of social housing. Based on a thorough analysis of federal and regional legislation, for each class, an index is constructed, increasing in degree of regulation. The average of class-specific indices make up a composite index. The index reflects dramatic increases in regulations during and immediately after the World Wars. Likewise, the 2010s are characterized by a surge in virtually all classes of regulations in Germany related to the growing housing scarcity in large cities due to intra- and international migration leading to a geographical mismatch between housing supply and demand.

Konstantin A. Kholodilin

Research Associate in the Macroeconomics Department

JEL-Classification: K23;N9;R30
Keywords: Housing policy, rental housing, Germany, regulation index
Frei zugängliche Version: (econstor)