It is happening all around Europe.
Rent control + increasing wealth of the economy is crowding areas and limiting to bid for new renting spaces.
Rent control + increasing wealth of the economy is crowding areas and limiting to bid for new renting spaces.
I'm in a US Rust Belt city that's lost population since the 1950s, and had flat growth in the region since 1970.
Yet in many neighborhoods housing prices have doubled to quintupled over the past 15 years.
Similar stories in a lot of other rust belt areas which I know are not booming. The urban areas are definitely more attractive than they used to be, but it doesn't add up. It makes me think the drive behind this is post-financial crisis monetary policy.
(Still at a very high absolute level.)
The only city I am aware of with rent control in Europe is Stockholm. Apparently finding a flat there is a nightmare. Where I live there is no rent control and its still a nightmare trying to find somewhere central to rent for a decent price.
You can get a firsthand contract for spatious 2 room apartment in Märsta for 14k a month right now.
At the end of our last 5 year contract the rent went up by around 45%. Bought a small place further out instead.