650 Childs Way, Los Angeles, CA 90089

View map Free Event

“Do Rent Increases Reduce the Housing Supply Under Rent Control? Evidence from Evictions in San Francisco”

Abstract

Rent control tries to balance tenancy security and landlord profitability, but landlords may try to circumvent rent control by exiting the controlled market via no-fault evictions. If rent increases incentivize these no-fault evictions, then the existence of the controlled housing stock may be threatened, because many cities and states ban imposing controls on new construction. I test for no-fault economic evictions using an identification strategy that proxies for rent increases via the transit amenity generated by privately-provided commuter shuttle systems, and instrument for shuttle stop location endogeneity with exogenous placement constraints. Shuttle-induced rent increases increased the monthly no-fault probability by 0.04%, or an extra 13 no-fault evictions per month, with further evidence that this probability rises as price pressures increase. Additional results show that policies raising barriers to market withdrawals/no-fault evictions cause controlled landlords to respond by turning over their tenants at higher rates via at-fault evictions.

Please RSVP to tibayan@price.usc.edu

Event Details

  • Chengcheng Mei

1 person is interested in this event

User Activity

No recent activity