Housing shortages and rising rents have become a source of political pressure in many countries, prompting calls for stronger intervention in rental markets. This column shows that the effects of such intervention can outlast the policy itself: in Berlin, the 2020 rent cap was followed by continued debate over expropriation and further regulation, and the city’s price-rent ratio remained 10%–15% below trend even three years after repeal. The findings suggest that credible threats of future intervention can depress housing valuations, alter market structure, and weaken construction activity even when no regulation is currently in force.



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