This report does not constitute a rating action. A left-of-center coalition has emerged as the most likely new local government in Berlin following last month's elections. Although it is not yet certain that the potential parties will succeed in forming a coalition, they have reached a preliminary agreement on several policy actions that could increase the pressure on Berlin's public housing providers. On Oct. 18, 2026, representatives of the Social Democratic Party in Berlin, the Greens, and socialist party Die Linke published a document outlining their guiding principles for a three-party local-government coalition in Germany's capital. A significant part of the document outlines plans to increase the availability and affordability of housing in Berlin. The proposed policy comprises: Tighter regulation