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Housing Cooperatives, Housing Affordability, and Rent Control

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  • Matthias Wrede

Abstract

Housing cooperatives have a significant share in some countries, particularly in urban housing markets, and are supported by municipalities through tax breaks and preferential access to land. We examine the contribution of housing cooperatives to the provision of affordable housing and how they are affected by rent control. For Germany, we find that residents of cooperative housing pay lower rents than for-profit owners, but are still affected by rent control. In particular, we show that stricter limits on rent increases for existing residential leases in tight housing markets have the effect of lowering rents for housing cooperatives, while we find no such effect of rent regulation for for-profit landlords.

Suggested Citation

  • Matthias Wrede, 2024. "Housing Cooperatives, Housing Affordability, and Rent Control," CESifo Working Paper Series 11452, CESifo.
    • Handle: RePEc:ces:ceswps:_11452
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    More about this item

    Keywords

    housing affordability; housing cooperatives; housing tenure; rent control;
    All these keywords.

    JEL classification:

    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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