Berlin’s housing referendum looms over September election
The outcome of a 2021 vote to seize large landlords’ flats could decide which parties form Berlin’s next government.
On 20 September, Berliners will head to the polls not only to choose a new city administration but also to signal whether the city should move forward with a plan to transfer roughly 240,000 apartments from large for‑profit landlords into public ownership.
The vote follows a 2021 referendum in which more than 56 percent of voters backed the expropriation of properties owned by companies such as Deutsche Wohnen. The referendum was non‑binding, and five years later the issue remains unresolved, turning housing into the election’s defining battleground.
The referendum’s legacy
The 2021 initiative argued that profit‑driven landlords fuel rent hikes and that traditional policy tools have failed. It invoked Article 15 of Germany’s Basic Law, which permits the state to transfer land and means of production into public ownership for the public good.
Although the referendum result was celebrated by activists, it did not compel lawmakers to draft a concrete law. An expert commission in 2023 concluded that a socialisation scheme could be compatible with the constitution, but no legislation followed.
Coalition arithmetic
Berlin’s next government will likely be a coalition, and the parties’ stances on expropriation are shaping negotiations. The Left has made the referendum the centrepiece of its housing agenda, with federal leader Ines Schwerdtner declaring that “if The Left is in the Berlin government, socialisation will happen”.
“The current debate is already causing significant uncertainty among investors. Some of them are putting planned investments on hold for the time being,” said the Association of Business Organisations in Berlin and Brandenburg (UVB).
By contrast, the Social Democratic Party (SPD) candidate Steffen Krach has ruled out any coalition that makes expropriation a pre‑condition. The Greens remain broadly supportive of tenant‑protection measures but have placed expropriation lower on their campaign priorities.
The incumbent coalition of the Christian Democratic Union (CDU) and the SPD opposes the plan and backs federal efforts to limit states’ ability to use Article 15. The far‑right Alternative for Germany (AfD) also rejects expropriation, though it is unlikely to influence coalition talks given its isolation.
Risks and rewards
Supporters argue that transferring ownership would stabilise rents and give tenants a voice in management. They point out that publicly listed housing firms are obliged to maximise shareholder returns, a pressure they say drives rent inflation.
Opponents, including Oliver Panne of the UVB, warn that expropriation could cost billions in compensation, burden the city with maintenance and climate‑upgrade costs, and damage Berlin’s reputation as a business hub.
Beyond the political tug‑of‑war, the uncertainty surrounding the issue is already affecting investment decisions, potentially slowing the construction of new housing and prolonging the shortage.
As coalition talks unfold, the referendum will either be codified into law or fade into the background, shaping Berlin’s housing market for years to come.
