DOI: 10.19830/j.upi.2020.347
Exploring the Unitary System of the Rental Housing Market Under the German Socio-Market Model: A Case Study of Berlin

Zhang Xinyi, Xia Jing, Sun Bindong

Keywords: Socio-Market Model; Unitary System; Cost Renting; Germany; Berlin


Different from the ‘duality system’ in most countries, Germany has developed a ‘unitary system’ of the rental-housing market under its socio-market model. With its low owner-occupied rate, high rental rate and low price-income ratio, the housing market in Germany is an excellent reflection of a healthy developed housing market that choose and stick to the unitary system. This paper holds that the key to the success of the unitary rental-housing system is the integration of the non-profit and profit-making market, which greatly ensures the diversity and competitiveness of the rental market, making the cost-renting houses attractive to the suppliers in the market, while providing flexibility for the supply of rental housing to cope with various changes in demand. This paper evaluates the implementation of the ‘two-tier rent management system’, the housing cooperatives, and the ‘protection of tenants’ rights’ in the unitary house-renting system. On this basis, the paper shows the development of Berlin’s rental-housing market as a case model under the unitary system, thereby providing suggestions on the rental-housing market of large cities in China.


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