This paper argues that homeowners, if sufficiently influential, may attempt to manipulate housing prices. The paper presents an instance of, and sets out the political economy behind, one particular homeowner-made housing price bubble (in East Germany). Yet ultimately the paper suggests that...

Aktuellen Schätzungen zufolge stehen etwa 1 Mio. Mietwohnungen in Ostdeutschland leer, ohne dass die ostdeutschen Wohnungsmieten sinken würden. Vielmehr stagnieren die Mieten weiterhin knapp unterhalb des westdeutschen Niveaus. Nur wenige Märkte dürften auf ein Überschussangebot so...

Summary This is a short note on two potential worries surrounding a scenario of falling rents in East Germany. These worries, put forward by Wolfgang Maennig, are: (1) that housing suppliers could withdraw as rents fall, while (2) housing demanders might hesitate to expand consumption as rents...