Rent Control and Housing Investment: Evidence from Deregulation in Cambridge, Massachusetts
Publication Date: May 2003
Author(s): Henry O. Pollakowski
Keywords: rent stabilization; Cambridge, Massachusetts; deregulation; rent control
Coverage: New York Massachusetts
This study, authored by Massachusetts Institute of Technology (MIT) economist Dr. Henry O. Pollakowski, tracks the effects of rent deregulation on construction and repair-related housing investment in Cambridge, MA since rent control ended there in 1994. Dr. Pollakowski finds that rent deregulation in Cambridge led to a 20% increase in construction and repair related investment in formerly rent-controlled buildings. This study suggests that similar deregulation in the New York City housing market should lead to significant new investment in both affluent and modest income neighborhoods, thereby increasing housing quality.