Has Germany Figured Out the Way to Keep Rents Affordable?

From the outside, Germany looks like a renter's paradise. Worried about being evicted from your German apartment? It'll only happens if you don't pay the rent, or if your landlord him or herself wants to move in. Afraid your rent will skyrocket overnight? It can't really. Rent increases on existing contracts are capped at 20 percent over three years, following a first year where no increase is permitted. Sure, tenants also have extra responsibilities – they need to give three months notice before moving out, and often do their own renovations. Still, renters looking wistfully towards Germany from Paris, London or New York could hardly be blamed for feeling a stab of envy.

But according to Germany's new coalition government, these protections just aren’t enough.