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The redistribution of housing wealth caused by rent control

Author

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  • Ahern, Kenneth R.
  • Giacoletti, Marco

Abstract

This paper studies the effects of rent control on the housing wealth of renters, landlords, and homeowners. Following the passage of rent control in St. Paul, Minnesota in 2021, average property values fell by 4.0% to 5.5%. Leveraging parcel-level data, we show that in the aggregate, renters gained and landlords lost, though upper-income renters gained more than lower-income renters, while small landlords lost the same as large landlords. Owner-occupants’ wealth also fell significantly from direct capitalization effects and negative externalities. These results provide the first evidence on the heterogeneous wealth effects of a wave of new rent control laws.

Suggested Citation

  • Ahern, Kenneth R. & Giacoletti, Marco, 2026. "The redistribution of housing wealth caused by rent control," Journal of Urban Economics, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:juecon:v:152:y:2026:i:c:s0094119026000161
    DOI: 10.1016/j.jue.2026.103845
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    Cited by:

    1. Benito Arruñada, 2026. "La paradoja de la protección contractual: Proteger al débil de hoy excluye al débil de mañana," Fedea Economy Notes 2026-11, FEDEA.

    More about this item

    Keywords

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    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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