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Price Effects of Rent Control on Controlled and Uncontrolled Rental Housing in Toronto: A Hedonic Index Approach

1985; Wiley; Volume: 18; Issue: 3 Linguagem: Inglês

10.2307/135026

1540-5982

George Fallis, Lawrence B. Smith,

Financial Literacy, Pension, Retirement Analysis

This paper examines the price effects of rent controls with exemptions on rent controlled and non-rent controlled housing in Toronto. A model of rent determination in the controlled and uncontrolled markets is presented. The paper then applies a hedonic pricing technique to develop indices of the uncontrolled rent relative to the controlled rent for standardized sets of housing characteristics. Approximately one-half of the difference in observed rents is attributable to quality differences between markets and one-half to the effect of rent controls.