Berlin is to hold a referendum on a grassroots proposal that would force major property companies to sell thousands of their apartments to a public-owned body. A public petition for the idea, fueled by anger over surging housing prices, has gathered 183,711 valid signatures, which is more than the 172,000 required to put the question to a public vote in the city.

The idea, proposed by the “Expropriate Deutsche Wohnen & Co." initiative, would target companies with more than 3,000 apartments in their portfolio, and would likely see more than 240,000 homes placed under a public agency that would be required to administer the homes “democratically, transparently, and in the public interest.”

The campaign comes after rising anger in the German capital over the cost of housing. More than 80% of Berlin’s 3.7 million residents are renters, rather than homeowners. Property prices in the city have risen by nearly 85% between 2007 and 2019, driven by the capital’s attractiveness to investors and a structural lack of housing. While the city’s government attempted to freeze rents for five years in 2020, the policy was struck down in Germany’s federal constitutional court in April.

The latest campaign bases its argument on the wording of Article 15 of the German constitution, which states that “land, natural resources and means of production may... be transferred to public ownership" in the public interest in return for compensation. The campaign seeks to create “a historic opportunity to permanently secure good quality, affordable housing for numerous Berliners through the socialization of profit-oriented corporate landlords,” activist Leonie Heine said in a statement by the group.

Major real estate company Deutsche Wohen has criticized the campaign, saying “it doesn't create a single square meter of additional living space.” Speaking to the AFP, they said "We need more housing built to ease the market pressure, that is why we will be stepping up building in the coming years in Berlin.” The company owns around 111,000 of the estimated two million rental apartments in Berlin, and recently announced plans to merge with fellow real estate giant Vonovia, who own approximately 40,000 homes in Berlin.

The city’s mayor has also spoken out against the referendum, arguing that partnerships with the private sector are needed to solve the housing crisis. Nonetheless, the vote is expected to be held on 26th September, the same day as local and national elections in Berlin.

Yesterday, we covered a campaign by AIA Los Angeles to tackle homelessness and housing shortages in LA, which includes seven strategies which the organization hopes will be adopted by city officials.