Why Berlin has banned Airbnb
Starting May 1, Airbnb will be banned in Germany's capital.
Under the new law, called Zweckentfremdungsverbot, the German government will ban short-term leases in Berlin under Airbnb and its competitors in order to free up more affordable housing in the city.
It is 鈥渁 necessary and sensible instrument against the housing shortage in Berlin,鈥� Andreas Geisel, Berlin鈥檚 head of urban development . 鈥淚 am absolutely determined to return such misappropriated apartments to the people of Berlin and to newcomers.鈥�
Because it is more profitable for homeowners to rent out rooms and entire apartments through multiple short-term stays rather than a long-term lease, opponents of the San Francisco-based startup accuse Airbnb of causing even more of a housing shortage in the city.
鈥淭he supply-demand imbalance, mixed with an activism-prone culture and a population that is about 85% renters, has ,鈥� wrote The Wall Street Journal鈥檚 Eliot Brown last fall. And Berlin鈥檚 housing crisis will likely get worse as it intertwines with Europe鈥檚 migration crisis. 鈥淔rustrations over housing have literally spilled into the streets, leaving landlords to deal with smashed windows and occasional threats to their safety.鈥�
Berlin鈥檚 population has continued to grow in the 21st聽century while housing development continues to lag behind. Whereas the city witnessed an influx of almost 50,000 new residents in 2014, only were completed. If growth continues at the same pace, some say Berlin will need as many as a year to effectively keep up with demand. But the same city rules that make it difficult to build new homes (such as strict rent laws and a 鈥溾��) have also caused Airbnb to thrive in the city.
鈥淏erlin is the unchallenged Airbnb capital of Germany: More flats and rooms are offered here than in Hamburg, Munich, Cologne and Frankfurt combined,鈥� suggests a Berlin v. Airbnb report from the German college FH Potsdam. 鈥淎ccording to the data that Airbnb makes publicly accessible, around 11,700 accommodation units are offered for rental in Berlin each day鈥�. This means that out of the 1.9 million flats in Berlin .鈥�
And while Paris, New York, and London have with 40,000, 34,000, and 23,000 listings respectively, the top list changes drastically when comparing demand instead of sheer quantity. According to Airdna, a group focused on Airbnb鈥檚 data and analytics, Berlin ranks above these three cities in demand. With an average occupancy rate of 61.6 percent, Berlin has the 7th聽highest Airbnb demand in the world, the most of any other European city besides Lisbon.
Zweckentfremdungsverbot does not come as a surprise to Berlin homeowners, because the law was passed in 2014, granting homeowners a two-year adjustment period before implementation.
And if landlords are found violating the new law, they could face a 鈧�100,000 (or $113,000) fine. But the new law is not cut and dried: Homeowners are still permitted to rent out single rooms in their home, but the rented area can鈥檛 comprise more than 50 percent of the entire property.聽
鈥淟andlords will also be able to to rent out entire apartments short-term from the local borough,鈥� explains The Atlantic鈥檚 CityLab. 鈥淭heir applications must include a convincing explanation of why they need to rent the apartment short-term, which will be scrutinized and quite possibly rejected by the borough. For those that are approved, the apartment can be rented for no more than the average rent per square meter for the local area.鈥�
Valued at at the end of 2015, Airbnb is the third most valuable privately held startup. As a result of the April 30 deadline, listings in Berlin dropped 40 percent by March.
鈥淲e will continue to encourage Berlin policy-makers to listen to their citizens and to follow the example of other big cities such as Paris, London, Amsterdam, or Hamburg and create new, clear rules for ,鈥� said Airbnb spokesman Julian Trautwein. He added that Airbnb 鈥渉elps many Berliners pay their rent.鈥�
