After World War II, the American and German housing systems mutually underwent massive and lasting changes. Returning soldiers and destroyed buildings in Germany created a severe housing shortage in the war-torn country; in fact, a 1946 census revealed that to support the population, 5.5 million additional homes were needed in West Germany alone. And while the United States did not suffer such extensive destruction, we also experienced an influx of returning military personnel unprecedented in the modern world. This surge coincided with a prospering post-war US economy—which led to a growing number of middle class citizens looking to move into better homes— to leave the United States and Germany in a similar extreme housing deficiencies, necessitating immediate governmental intervention in both countries. But today, only 41% of Germans are homeowners, whereas US home ownership rates, though lower than before the 2008 …show more content…
While American renters live in fear of their landlords suddenly increasing their monthly payment, effective and enforced rent caps that began in Berlin now protect most German citizens. And the government continues to support the construction of more housing units, which serves to keep renting prices low and often far below the rent cap. 2012 statistics reveal German houses are now 10% cheaper than they were in 1982 as a result of these policies. On the other hand, the United States actively encourages home ownership by giving tax breaks to homeowners, and rising property values are viewed as a sign of a strong economy. Furthermore, mortgages are relatively easy to obtain in the US when compared to Germany, where banks commonly charge a 20% down payment. Only time will tell which government’s policy will prove more effective, but the German housing market has thus far defied the negative predictions of American