Debate Over Extending Germany's Rent Control Intensifies

The proposed extension of the Mietpreisbremse until 2029 faces political hurdles as parties clash over housing policy solutions.

The SPD and Green parties in the Bundestag have introduced a bill to extend the Mietpreisbremse (rent control) from its current expiration in 2025 to 2029.
The Mietpreisbremse limits rent increases to 10% above the local average for new leases in areas with strained housing markets, excluding newly built or heavily modernized properties.
The FDP opposes the extension, advocating instead for easing construction regulations to increase housing supply as a solution to affordability issues.
In Baden-Württemberg, the CDU-led state government plans a temporary six-month extension to the law while awaiting a federal decision.
Critics, including property owner associations, argue that rent controls discourage private investment and exacerbate inefficiencies in the housing market.