the_dunk_tank
It's the dunk tank.
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I should have prefaced, as a socialist I think we should build more PUBLIC housing. That would address the problem more quickly and directly.
However...
Part of the reason they can charge so much is they don't have much competition, any open space is going to have a lot of people competing for it so you can Jack up prices, somebody will probably be able to pay. If there was more selection people could go for cheaper options and landlords wouldn't be able to ask exorbitant prices for subpar properties.
If it reaches the scale of Red Vienna then it definitely starts to have an effect
Yeah part of the reason the Karl Marx Hof worked is because private landlords now had to compete with this really nice, affordable, housing bloc. You can't charge exorbitant rents if your tenants have a decent affordable option on the plate.
That is until nobody can afford to pay, then all that land is overvalued and the bubble gets scary again