A new measure of private rental market regulation index and its effects on housing rents

Abstract

Purpose The purpose of this paper is twofold: first, the authors construct a country-specific time-varying private rental regulation index for 18 developed economies starting from 1973 to 2014. Second, the authors analyze the effects of their index on the housing rental markets across 18 countries and states. Design/methodology/approach The authors’ index not only covers 18 developed economies over 42 years but also combines both tenure security and rent laws. The authors’ empirical framework is that of panel regressions with time and country fixed effects. Findings The authors’ index sheds further insights on the extent to which rent and tenure security laws have converged over the past 40 years for each economy. Moreover, the authors show three empirical results. First, stringent rent control regimes do lead to lower real rent growth rates than regimes with free rents. Second, soft rent control regimes with time-limited tenure security and minimum duration periods, however, may cause higher rent growth rates than free rent regimes. Third, rent-free regimes do not show significant high real rent appreciation rates. Originality/value The authors’ rental regulation index is the first time-varying index that covers more than 18 economies over 40 years.

House price index (HPI) and Covid-19 pandemic shocks: evidence from Turkey and Kazakhstan

“…Therefore, investigating the impact of Covid-19 pandemic shock and market linkages on HPI at the regional level may provide interesting and insightful information to several individuals, as well as authorities. Some studies revealed that examined regional house price linkage provides more enriching information to the investors (Blaseio and Jones, 2018; Chien et al , 2019; Weber and Lee, 2020). Blaseio and Jones (2018) studied housing prices of Germany and UK; Chien et al (2019) studied China and Taiwan housing prices and Weber and Lee (2020) used Rental Market Regulation Index of 18 countries to study housing price across those countries while this paper investigates the impact of Covid-19 pandemic and markets linkage between Turkey and Kazakhstan HPIs.…”

“…Some studies revealed that examined regional house price linkage provides more enriching information to the investors (Blaseio and Jones, 2018; Chien et al , 2019; Weber and Lee, 2020). Blaseio and Jones (2018) studied housing prices of Germany and UK; Chien et al (2019) studied China and Taiwan housing prices and Weber and Lee (2020) used Rental Market Regulation Index of 18 countries to study housing price across those countries while this paper investigates the impact of Covid-19 pandemic and markets linkage between Turkey and Kazakhstan HPIs. This is because sometimes investors relocate their investment capital to more efficient markets in the quest of seeking better income.…”

Rent Control Effects through the Lens of Empirical Research: An almost Complete Review of the Literature

“…This can be explained by a new regulation wave that can be observed especially in Europe (France, Germany, and Spain). Further, the 2010s and 2020s are seeing a surge in international studies, including Sánchez and Andrews (2011), Weber and Lee (2020), Kholodilin and Kohl (2021a), Kholodilin and Kohl (2021b) that are not confined to a single country, but rather cover multiple countries.…”

Housing and Setting Constraints: The Portuguese Evidence

“…Soft rent control regimes with time-limited tenure security and minimum duration periods, however, may cause higher rent growth rates than free rent regimes. Rent-free regimes do not show significant high real rent appreciation rates [36], p.…”