Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts
By David H. Autor, C. Palmer, Parag A. Pathak. Journal of Political Economy, 2014
232 citations recorded by the source corpus.
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.
Subfields: Accounting, Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/7737ef635fe825120690bb7d583da36671c5142e
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Citations in the corpus
- When Do Renters Behave Like Homeowners? High Rent, Price Anxiety, and NIMBYism (2018, background): “New apartments may replace existing blight, such as an empty lot or vacant building, improving nearby home values and encouraging neighboring property owners to renovate their untis (Autor, Palmer, and Pathak 2014).”
- Creative Destruction: Barriers to Urban Growth and the Great Boston Fire of 1872 (2017, unknown): “…to a literature on neighborhood spillovers from urban revitalization (Rossi-Hansberg, Sarte, and Owens 2010), home foreclosures (Campbell, Giglio, and Pathak 2011; Mian, Sufi, and Trebbi 2015), gentrification (Guerrieri, Hartley, and Hurst 2013), and rent control (Autor, Palmer, and Pathak 2014).”
- Causal Inference in Urban and Regional Economics (2014, unknown): “Autor et al. (2014) use a similar specification to measure the effects of rent decontrol in Cambridge, Massachusetts, on housing values and Ellen et al. (2013) do so for examining the effects of foreclosures on crime.”