The current real estate situation in Berlin is enough to give a CRE professional heartburn. A vote will decide whether the city confiscates apartments from any owner of more than 3,000 properties, according to a Wall Street Journal report.
The vote is likely to pass, according to the story, because people are angry about rising rents. And while confiscations are unlikely—the referendum is non-binding, and the city would go into debt for the roughly €36 billion to be paid for the 240,000 affected units—it could cause politicians to double down on existing regulations.
Although such a vote isn't likely in the U.S., there is anger over rising home prices, costs of single-family rentals, and the perceived position of institutional investors. The question is whether, like in Berlin, popular backlash could push politicians, if not at the federal level, then state or local.
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