Germany’s publicly traded real estate companies (Deutsche Wohnen, Vonovia, ADO and others) have come under massive pressure in recent weeks. Many of their stockholders come from the United States and Great Britain and the companies’ prospects are not looking good right now. This is because the kind of ideas traditionally associated with planned economies are gaining more and more support all over Germany.

Yes, rents in Germany’s largest cities have risen sharply over the last few years, but there are a multitude of reasons for this, and none of them are related to a “market failure”.