Distributional Consequences of Rent Regulation

Nicola Stalder, Lukas Hauck, Simon Buechler and Maximilian von Ehrlich

ERES from European Real Estate Society (ERES)

Abstract: This paper examines the distributional consequences of rent regulation. We estimate counterfactual free market rents for households benefiting from rent control in their current tenancy. The gap between the paid rent and free market rent represents the benefit that a household draws from the rent control policy. We document how this measure is allocated along various household characteristics, providing novel evidence on the distributional consequences of rent control policies. Our results show that rent control mainly benefits older renters at the expense of younger ones.

Keywords: Distributional Consequences; Housing demand; Rent Regulation; Residential Real Estate Market (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-reg and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2024-253

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