IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05322057.html
   My bibliography  Save this paper

Does rent control increase rental returns ? The case of the metropolitan housing market of Lille, France

Author

Listed:
  • Guillaume Toussaint

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Arnaud Simon

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

Using machine-learning (ML) methods to appraise rental returns with a rent and a transaction database, we estimate a difference-in-differences (DiD) model to test the effect of rent control (RC) on rents, capital returns and rental returns in Lille, France. Bringing a financial perspective to public policy analysis, we show that the introduction of RC, a tool that is the subject of much debate in economic literature, has negative consequences on the housing market through the signal it sends out to investors rather than through its direct effects. It has led to i) an increase in rents for the largest properties, ii) a decrease in capital returns for all properties and iii) an increase in rental returns for the largest ones. These results are consistent with the predictions of the stock-flow model considering the effects of investor expectations. RC has led to a decrease in housing prices rather than a general decline in rents or rental returns, especially for the largest properties.

Suggested Citation

  • Guillaume Toussaint & Arnaud Simon, 2025. "Does rent control increase rental returns ? The case of the metropolitan housing market of Lille, France," Post-Print hal-05322057, HAL.
    • Handle: RePEc:hal:journl:hal-05322057
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05322057. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.