Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts
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Autor_Housing market.pdf
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1.78 MB
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Author(s)
Autor, David H.
Palmer, Christopher John
Pathak, Parag
Pathak, Parag
Date Issued
June 2014
Journal
Journal of Political Economy
Publisher
University of Chicago Press
Citation
Autor, David H., Christopher J. Palmer, and Parag A. Pathak. “Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts.” Journal of Political Economy 122, no. 3 (June 2014): 661717.
Version
Final published version
Abstract
We measure the capitalization of housing market externalities into residential housing values by studying the unanticipated elimination of stringent rent controls in Cambridge, Massachusetts, in 1995. Pooling data on the universe of assessed values and transacted prices of Cambridge residential properties between 1988 and 2005, we find that rent decontrol generated substantial, robust price appreciation at decontrolled units and nearby never-controlled units, accounting for a quarter of the $7.8 billion in Cambridge residential property appreciation during this period. The majority of this contribution stems from induced appreciation of never-controlled properties. Residential investment explains only a small fraction of the total.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1086/675536
