The effect of second generation rent controls: New evidence from Catalonia

Joan Monras and José Garcia Montalvo ()
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José Garcia Montalvo: https://www.upf.edu/web/econ/faculty/-/asset_publisher/6aWmmXf28uXT/persona/id/3418887

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: Catalonia enacted a second-generation rental cap policy in late September 2020. The policy affected some municipalities but not others, and within those, only the units above a certain reference price. Using micro-data on rental units, we analyze the effect of the policy on both rental prices and rental supply. We find that the policy led to a reduction in rental prices of around 5 percent. Half of this price decline is due to changes in the composition of units available in the market, particularly in larger municipalities. The policy also led to a decline in the amount of rental units available in the market. Using variation from the policy change, we compute a rental housing supply elasticity of around 4.

Keywords: Rent control; reference price; housing supply; event study (search for similar items in EconPapers)
JEL-codes: D4 R21 R28 R31 (search for similar items in EconPapers)
Date: 2021-12, Revised 2022-04
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (4)

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Working Paper: The Effect of Second-Generation Rent Controls: New Evidence from Catalonia (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1836

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