Friedrich Merz plans federal ban on housing socialization

Chancellor Friedrich Merz is planning a nationwide ban to prevent federal states from transferring large private housing stocks into public or communal ownership. This move aims to block the socialization of property under Article 15 of the Basic Law, a process often referred to as expropriation.

The initiative follows the electoral victory of the Left Party (Die Linke) in the Berlin House of Representatives election in September 2026, which brought the issue of housing socialization back to the forefront of political debate. The Left Party seeks to implement socialization as part of potential coalition negotiations, potentially affecting approximately 240,000 apartments owned by companies with more than 3,000 units.

Merz has indicated that the project will be pursued quickly, with initial drafts being coordinated between the Federal Ministry of the Interior and the Ministry of Justice. This follows a prior agreement between the Union and the SPD in July 2026 to exclude the possibility of states nationalizing private rental apartments through their own socialization laws.