The Supply Side Effects of Rent Controls: Evidence from Ireland

Tom Gillespie, Janez Kren, Ronan Lyons () and Conor O'Toole
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Tom Gillespie: Galway University
Janez Kren: Economic and Social Research Institute

No tep0624, Economic Papers from Trinity College Dublin, Economics Department

Abstract: We use the introduction of rent stabilisation measures in Ireland after 2016, and their tightening in 2021, to understand the impact of these policies on rental supply. We use a district-level quarterly panel 2010-2023 to estimate whether there were market exits by landlords, in particular an increase in sale listings and a decrease in rental activity, after rent controls were applied. Rental activity is measured using both online listings and official tenancy registrations, with further data on room rentals. We use both two-way fixed effects and, given the nature of treatment, staggered treatment estimators. We also control for housing market and wider economic conditions and restrict our sample to minimize the impact of unobserved variables. Across all specifications, we find evidence of market exit, especially after rent controls were tightened: rent controls are associated with more sale listings and fewer rental listings/registrations. The negative impact of rent controls of room rental listings is, likewise, consistent with market exit rather than simply reduced mobility.

Keywords: Â rent control; landlord attrition; Ireland (search for similar items in EconPapers)
JEL-codes: D22 R31 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2024-08
New Economics Papers: this item is included in nep-ure
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