Economy September 18, 2026 02:17 AM

Tempelhof and Skyrocketing Rents Take Center Stage in Berlin Election

Severe housing shortfall and soaring advertised rents make housing policy the decisive issue as Berliners head to polls

By Marcus Reed
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Berlin’s acute housing shortage and rapidly rising rents have become the dominant issues in the city’s election, overshadowing immigration debates elsewhere in Germany. With a rental market that serves 85% of households, a projected shortfall of 211,000 homes by 2040, and advertised rents almost doubling since 2014, parties clash over whether to build on the iconic Tempelhofer Feld while campaigning over rent freezes, limits and development strategies.

Tempelhof and Skyrocketing Rents Take Center Stage in Berlin Election
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Key Points

  • Housing is the dominant voter concern in Berlin, where 85% of households rent and the city needs 211,000 more homes by 2040 - sectors affected include residential real estate, construction, and municipal planning.
  • Advertised rents in the city have nearly doubled since 2014, contributing to protests and political gains for both the far-left Left Party and the far-right AfD - sectors affected include consumer spending, services, and cultural/nightlife venues.
  • The debate over developing Tempelhofer Feld pits the need for new housing against preserving one of the world’s largest urban open spaces, affecting developers, green-space advocates, and tourism/recreation sectors.

Berlin’s looming housing crisis and the fate of the city’s iconic Tempelhofer Feld have taken center stage as voters prepare to cast ballots on September 20. The debate contrasts the urgent need for new homes with strong public sentiment to preserve one of the capital’s largest open spaces, while political maneuvering around rents and development threatens to reshape the city’s governing landscape.


Top concern for renters

Unlike other German state elections where immigration has been a key driver of support for the far-right Alternative for Germany (AfD), the defining issue in Berlin is housing. The city, where 85% of households rent, faces a projection that it will need 211,000 additional homes by 2040. At the same time, advertised rents have nearly doubled since 2014, fueling broad dissatisfaction with the incumbent city government, which is a coalition of the centre-right Christian Democrats (CDU) and centre-left Social Democrats (SPD) mirroring the national alliance.

The vote on September 20 is viewed as another test of backing for Chancellor Friedrich Merz’s struggling federal government, coming two weeks after the AfD’s strong showing in the eastern state of Saxony-Anhalt. Neighbouring Mecklenburg-Western Pomerania also holds elections on the same day.


Current polling and party standings

According to a Forschungsgruppe Wahlen poll published on September 11, the far-left Left Party leads in Berlin with 23% support, followed by Merz’s CDU at 21% and the AfD at roughly 17%. The SPD and the Greens trail behind. Both the Left Party and the AfD have approximately doubled their support since the last Berlin election in 2023.


Tempelhofer Feld - contested ground

The debate over whether to allow construction on the former Tempelhof airport has crystallized broader tensions between housing supply and public green space. Converted to a park in 2010, Tempelhofer Feld is nearly twice the size of London’s Hyde Park and ranks among the world’s largest urban open spaces. Its past includes expansion during the 1920s, use under Nazi rule, and a pivotal role during the 1948-49 Berlin Airlift, when Western allies supplied the blockaded city by air. The airport itself closed in 2008.

Four years after the park opened, nearly two-thirds of Berliners voted in a referendum to keep the site largely free from development. Activists opposing construction at the site argue that open space is a form of social and ecological infrastructure. Anita Moeller, a member of the 100% Tempelhofer Feld initiative, said: "Open space is not land for development. It is social and ecological infrastructure - and Tempelhofer Feld is Berlin’s open space."

Political parties remain divided on the issue. The CDU, Free Democrats (FDP) and AfD back limited housing construction on parts of the Feld, arguing that development could help alleviate the city’s housing shortage. The SPD, Greens and Left Party oppose building on the site and prefer to focus on other development locations within the city. Stefan Evers, the CDU’s lead candidate in Berlin, noted that "the referendum was 12 years ago, the need was nowhere near as great then as it is today," emphasizing the changed context for housing demand.


Economic growth and its housing consequences

Over the past decade Berlin has outpaced Germany’s generally sluggish economy, largely on the strength of its services sector, which produces nearly 90% of the city’s economic output. The capital also remains a center for startups, with more than 600 companies founded in 2025 alone, and hosts digital consumer-services firms such as Zalando and fintech N26 among its corporate roster.

But economic momentum has sharpened pressure on housing. Population growth tied to services and startup activity has pushed up demand for housing, contributing to the nearly doubled advertised rents since 2014. Would-be developers argue that building on places like Tempelhof could help expand the housing stock. Yet many residents struggling with elevated rents say that more targeted measures are needed to make housing genuinely affordable.

For some longtime residents and cultural operators, the escalation in costs has altered the city’s character. The German capital, once described by a former mayor as "poor but sexy," now increasingly resembles other major European cities in living costs. Thousands turned out on September 5 to protest high rents. Among them, Mareen Harant highlighted the affordability squeeze, saying that in Berlin "you can easily end up paying €1,500 ($1,720) or more a month for a one- or two-room apartment. Who on earth is supposed to be able to afford that?"


Policy promises and campaign turbulence

Parties are proposing different paths to address the crisis. The Left Party’s platform includes pledges to build affordable new homes, implement a one-year rent freeze followed by a cap limiting increases to 1%, forcibly reduce rents that are 20% over the local average, curb holiday rentals in housing blocks, and offer vacated central flats to those entitled to social housing.

Meanwhile, the governing CDU and SPD have seen their campaigns disrupted. In July, CDU Mayor Kai Wegner withdrew as lead candidate amid criticism over his handling of a January power outage that left large parts of the capital without electricity for four days. The SPD has faced its own challenges after police raided the home and offices of its lead candidate, Steffen Krach, as part of an investigation into a tender process in the health sector; Krach denies any wrongdoing.


Wider social and cultural impact

Rising land and property prices are not only straining household budgets; they are also squeezing cultural institutions and nightlife. Martin Gornig, a researcher at the German Institute for Economic Research (DIW Berlin), observed that "growth also has a downside: prices rise and, above all, land prices rise, so space becomes scarce."

Berlin’s nightlife has felt the pressure. Jakob Turtur, managing director of Jonny Knueppel, a collectively run club, described the impact of rising rents on venues: "We had to move because we simply could no longer afford the rent." Such dislocations underscore the broader trade-offs at play between economic growth, urban amenities and affordability.


Outlook

The election will test the durability of the incumbent coalition and the appeal of parties offering more radical housing interventions. With both the Left Party and the AfD having gained ground since 2023, and with rent-related protests drawing public attention, Berlin’s contest illustrates how acute urban shortages and cultural pressures can drive political change.

As voters decide on September 20, the competing pressures of protecting public open space and expanding housing supply will remain central to how policymakers and markets respond to Berlin’s continuing affordability challenges.

Risks

  • Political fragmentation and voter backlash could unsettle the incumbent CDU-SPD coalition, creating policy uncertainty for developers and investors in the real estate and construction sectors.
  • Continued rent increases and limited housing supply risk further displacement of cultural venues and small businesses, impacting the city’s nightlife and services industries.
  • Plans to restrict or reallocate land use (for example, keeping Tempelhofer Feld undeveloped) could prolong the housing shortfall, maintaining upward pressure on rents and constraining housing market liquidity.

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