European Rental Properties Are Now Less Available, Less Affordable and Less Accessible.
The HousingAnywhere International Rent Index report for Q4 2021 has revealed a continuing trend of increasing rents for all accommodation types (apartments, private rooms and studios), across European property markets.
When comparing prices to the fourth quarter of the previous year, the most notable increase in rental prices is in Berlin, with a staggering price increase for apartments of nearly 40% when compared to Q4 of 2020.
“Cities are competing for talent, while talents are competing for housing,” says Djordy Seelmann, CEO at HousingAnywhere. “This calls for stakeholders, such as municipalities, universities, property developers and technology providers to work together in finding both short-term and long-term solutions for the housing crisis that troubles Europe. We should be prioritising co-creation and cooperation, as global talents are postponing or even cancelling their international education and career plans because they cannot find proper housing.”
Simply regulating the rental markets using pricing caps and regulations to achieve affordability, does not seem to be wielding the desired results, as is evidenced by the backlash Berlin is experiencing after abolishing the rent cap (‘Mietendeckel’) earlier this year. Once again, lack of available and accessible housing is dictating prices, resulting in the nearly 40% increase of apartment rental prices.
Triple A: Availability, Affordability and Accessibility
“We see availability, accessibility and affordability as the foundation for a more sustainable rental ecosystem,” says Seelmann. “Short-term reliefs, such as rent caps and regulations, are not sustainable and can even be counterproductive in the long-term by adding risk to residential investment. This can have a negative impact on availability and accessibility. The rental market requires a stronger, long-term vision in achieving a Triple-A Rating.”