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Rent Control: Its Rationale and Effects

Author

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  • Lok Sang Ho

    (Department of Economics, Chinese University of Hong Kong, Shatin-NT, Hong Kong)

Abstract

This paper discusses the rationale behind rent control and analyses its effects using a capital theory framework in combination with traditional bid rent analysis. The experience in Hong Kong and Ontario is found to support the author's hypothesis that in addition to the reasons given by other authors, rent control is a substitute for public housing spending and hence is popular among fiscally strained governments. The theoretical discussion confirms earlier findings and additionally provides insight into some of the differential effects on quality and maintenance that have been observed.

Suggested Citation

  • Lok Sang Ho, 1992. "Rent Control: Its Rationale and Effects," Urban Studies, Urban Studies Journal Limited, vol. 29(7), pages 1183-1189, October.
    • Handle: RePEc:sae:urbstu:v:29:y:1992:i:7:p:1183-1189
    DOI: 10.1080/00420989220081121
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    References listed on IDEAS

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    1. Steven N. S. Cheung, 1975. "Roofs Or Stars: The Stated Intents And Actual Effects Of A Rents Ordinance," Economic Inquiry, Western Economic Association International, vol. 13(1), pages 1-21, March.
    2. Olsen, Edgar O, 1969. "A Competitive Theory of the Housing Market," American Economic Review, American Economic Association, vol. 59(4), pages 612-622, Part I Se.
    3. Denton Marks, 1984. "The Effect of Rent Control on the Price of Rental Housing: An Hedonic Approach," Land Economics, University of Wisconsin Press, vol. 60(1), pages 81-94.
    4. Robert Albon, 1978. "Rent Control, A Costly Redistributive Device? The Case of Canberra," The Economic Record, The Economic Society of Australia, vol. 54(3), pages 303-313, December.
    5. Lok Sang Ho, 1988. "Towards an Optimal Public Housing Policy," Urban Studies, Urban Studies Journal Limited, vol. 25(3), pages 204-211, June.
    6. Gyourko, Joseph & Linneman, Peter, 1990. "Rent controls and rental housing quality: A note on the effects of New York City's old controls," Journal of Urban Economics, Elsevier, vol. 27(3), pages 398-409, May.
    7. Gyourko, Joseph & Linneman, Peter, 1989. "Equity and efficiency aspects of rent control: An empirical study of New York City," Journal of Urban Economics, Elsevier, vol. 26(1), pages 54-74, July.
    8. Cheung, Steven N S, 1975. "Roofs or Stars: The Stated Intents and Actual Effects of a Rents Ordinance," Economic Inquiry, Western Economic Association International, vol. 13(1), pages 1-21, March.
    9. Olsen, Edgar O, 1972. "An Econometric Analysis of Rent Control," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1081-1100, Nov.-Dec..
    10. Marks, Denton, 1984. "The effects of partial-coverage rent control on the price and quantity of rental housing," Journal of Urban Economics, Elsevier, vol. 16(3), pages 360-369, November.
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    Cited by:

    1. Loïc Bonneval & Florence Goffette‐Nagot & Zhejin Zhao, 2022. "The impact of rent control: Investigations on historical data in the city of Lyon," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1646-1667, December.
    2. Alessio Sardo & Gianluca Cerruti & Arnulfo Daniel Mateos Durán & Allegra Grillo, 2024. "The judicial response to rent controls in Europe: Protecting property rights against state’s intervention?," European Journal of Law and Economics, Springer, vol. 58(2), pages 221-281, October.

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