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What the United States can learn from other rental housing markets around the world!

The massive economic shock caused by the COVID-19 pandemic has put a strain on housing markets in the United States, especially for the country's 44 million renter households, many of whom are facing rising rents and declining financial stability. Other countries around the world face similar problems, but their real estate markets are based on radically different legal structures, financial instruments, and policy frameworks. شقق على المارينا

With that in mind, we think now is a good time to ask what lessons the United States might learn about assisting people with their rent payments from other nations. What are the structures of rental housing markets in other countries? What kind of financial assistance and legal rights do renters in other countries receive? Are there similar housing shortage issues in other countries?

We asked researchers who study France, Germany, Japan, Spain, the United Kingdom, and the United States to summarize key features of rental housing markets in those countries to help us address these questions. These countries were chosen because they have broadly similar household income levels (which is a key determinant of housing demand) and similar financial systems (access to capital is crucial for housing development). Their other economic, legal, and policy elements that affect housing markets, on the other hand, are somewhat different, resulting in significant differences in rental markets.

In this article, we'll go over a few of the main takeaways from comparing the six countries. In each of the countries' case studies, readers will delve into a wealth of detailed information.

Rentership rates are linked to income—as well as policy decisions.

Renter households have lower wages and wealth than homeowners in each of the six countries surveyed. This partnership makes financial sense: buying a home is a long-term financial investment, and high-earning families can save for a down payment more easily. Homeownership grew at the national level in most countries during the post-World War II decades as national economies improved.

However, public policy, especially tax policy, has a significant impact on the relative size of the rental and owner-occupied markets. Rentership rates in the six countries range from 23% in Spain to 54% in the United States (Germany). Germany, in particular, provides the least generous tax incentives to homeowners; all of the other countries have made it a priority to encourage people to buy homes. The mortgage interest deduction in Germany is the polar opposite of the mortgage interest deduction in the United States: property owners can only subtract mortgage interest from their income taxes if they do not occupy the property.

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