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The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco

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  • Rebecca Diamond
  • Timothy McQuade
  • 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.

Suggested Citation

  • Rebecca Diamond & Timothy McQuade & Franklin Qian, 2018. "The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco," NBER Working Papers 24181, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24181
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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