Economic theory states that rent regulation causes housing shortage when rents are regulated below the market-clearing level. However, some cities seem to defy this prediction. The negative consequences of rent regulation are well documented, but relatively little research has tried to explain the conditions under which rent control can be maintained without unsustainable costs and excessive housing queues. This talk will present evidence from Sweden which suggest that population growth on a regulated rental market is a strong predictor of housing shortage. This helps explain why declining cities, such as the Austrian capital of Vienna, have been able to regulate rents while suffering relatively few negative consequences.
About the Speaker
Fredrik Hansson is a Research Fellow at the Lee Kuan Yew Centre for Innovative Cities. Before joining the LKYCIC he was a researcher at the Institute for Housing and Urban Research (IBF) at Uppsala University, an affiliated researcher at the Uppsala Urban Lab, and a former visiting PhD student at the Wharton School of the University of Pennsylvania. His research focuses on the human and economic consequences of residential living conditions. He has done research on spatial differences in subjective well-being due to urbanization, homeownership and housing price appreciation. Some of his other research has analysed the effect of indoor radiation on housing prices and children’s educational attainment. His research interests also include: urban economic modelling, economics geography, housing policy, housing insecurity, rent regulation, and real estate taxation.