Rent control: the law of unintended consequences at work

"The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco," a new NBER Working Paper by Rebecca Diamond, Timothy McQuade and Franklin Qian

Abstract:

We exploit quasi-experimental variation in assignment of rent control to study its impacts on tenants, landlords, and the overall rental market. Leveraging new data tracking individuals’ migration, we find rent control increased renters’ probabilities of staying at their addresses by nearly 20%. Landlords treated by rent control reduced rental housing supply by 15%, causing a 5.1% city-wide rent increase. Using a dynamic, neighborhood choice model, we find rent control offered large benefits to covered tenants. Welfare losses from decreased housing supply could be mitigated if insurance against rent increases were provided as government social insurance, instead of a regulated landlord mandate. 

Contact NBER to get a copy of the paper.

Conte at NewBostonPost.com: Millennials Like the Hub, But Can They Afford To Live Here?

Call it the latest attempt to bridge the knowledge gap in Boston between aging Baby Boomers and the Millennials. The eminent Boston Foundation, a century-old, well-endowed charity that doubles as a think tank, is talking a lot more to the next generation as it prompts the city’s civic leaders to hand over the reins to Boston’s millennials.

“The baby boomers have been late in turning their attention to the millennials,” said Paul Grogan, foundation president, last month. “We still think we are young.” Read more at NewBostonPost.com.