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Housing Market Spillovers: Evidence from the End of Rent Control in Cambridge, Massachusetts
Open accessAbstract
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.
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Cites
Loss Aversion and Seller Behavior: Evidence from the Housing Market
Genesove, D., & Mayer, C. (2001) · The Quarterly Journal of Economics · doi:10.1162/003355301753265561 · Cited by 1,628
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Redding, S. J., & Rossi-Hansberg, E. (2017) · Annual Review of Economics · doi:10.1146/annurev-economics-063016-103713 · Cited by 462
Diamond, R., McQuade, T., & Qian, F. (2019) · American Economic Review · doi:10.1257/aer.20181289 · Cited by 423
Identifying the Benefits from Homeownership: A Swedish Experiment
Sodini, P., Van Nieuwerburgh, S., Vestman, R., & von Lilienfeld-Toal, U. (2016) · doi:10.3386/w22882 · Cited by 58
Effectiveness and supply effects of high-coverage rent control policies
Jofre-Monseny, J., Martínez-Mazza, R., & Segú, M. (2023) · Regional Science and Urban Economics · doi:10.1016/j.regsciurbeco.2023.103916 · Cited by 31
Mortgage Lock‐In, Mobility, and Labor Reallocation
FONSECA, J., & LIU, L. (2024) · The Journal of Finance · doi:10.1111/jofi.13398 · Cited by 39
Metadata
- Authors
- Autor, D. H., Palmer, C. J., & Pathak, P. A.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 2014-06
- Volume
- 122
- Issue
- 3
- Pages
- 661-717
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W2130910304
- Cited by
- 261
- References
- 1
- FWCI
- 24.59
- Type
- journal article
- Language
- en
- Open access
- green
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