So why the difference? Similar to Canada and the US, Germany had a rental housing boom following the Second World War as the government scrambled to provide affordable housing for residents. But Germany never shifted its housing policy to incentivize ownership. It doesn't offer any financial benefits or subsidies for home owners, Voigtlnder explains. Prospective buyers typically need to provide a down payment of at least 20 percent, in addition to paying steep fees related to property transfers that can add another 10 percent to a house price. Unlike in Canada, the profit made when a house is soldthe capital gainis often taxed as well. Conversely, the German government has had strong renter protections: until recently, it limited the increase in annual rental rates to prevent gouging. (Several Canadian provinces, including Ontario and British Columbia, have similar policies for some existing tenants, but loopholes abound.) Together, these policies make for less of a financial incentive to buy a home and offer more long-term certainty for those considering renting. Paraphrase the authors idea in 1 sentence