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Berlin’s Barren Housing Market Is Putting Its Tech Boom at Risk*Lack of housing undermines the city’s appeal for tech talent*Polls show voters will likely oust the Social Democratic mayorBerlin’s new tech recruits are being told to take any apartment they can get, even if it’s nowhere close to the trendy neighborhoods that may have lured them to the German capital. The city’s housing crunch means startups in Berlin have lost an important edge, putting them on similar footing to rivals in London, Paris and Silicon Valley. That’s a challenge for a city that grew to become Europe’s third-largest tech hub in no small part because of its more affordable lifestyle.Rather than landing an apartment in a few weeks, Berlin newbies are stuck for months in temporary housing, others are forced into commutes of more than an hour, and some even give up and go home. While rising rents are a problem for most residents, the main issue for Berlin’s tech sector is a lack of supply, which means higher salaries offer little respite. “For the tech community, the issue is availability,” said Johannes Reck, chief executive officer of Berlin-based travel startup GetYourGuide AG. “We just don’t have enough housing.”That makes for a sticky problem, not just for companies competing for talent across the globe but for Berlin itself. In little over a decade, the city went from easygoing to inaccessible. If well-paid tech workers are struggling, the prospects are even bleaker for the average Berliner, and that’s having political fallout.(...) That level of demand means landlords can charge double the market rates for a short-term furnished apartment, further squeezing supply of permanent homes, Expath Chief Executive Officer Tia Robinson said.While it’s no longer as cheap as it once was, Berlin’s cost of living still compares favorably with other tech hubs. The city also has other advantages like Germany’s generous social-welfare system. In light of recent job cuts at the likes of Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc., that’s valuable for potential recruits, according to Vanessa Stock, head of human relations at Pitch Software GmbH. “Berlin is getting to this point because it’s a tech hub,” said Claudia Langer, partnerships manager at Localyze, a relocation service. “It was better when it was cheaper but that’s of course unrealistic.”
@MacroAlf The housing market has never frozen this rapidly.Not even leading to 2007-2008.Blackstone, KKR & Co are limiting redemptions from their funds in an attempt to slow the bleeding.Unless mortgage rates come down quick, it's not looking particularly good for house prices.