Research Case

Rebecca Diamond, Tim McQuade, and Franklin Qian, The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco, American Economic Review 2019, 109(9): 3365–3394.

Recent paper studies a law extending rent controls in San Francisco:

  • Small multi-family buildings built before 1980 were covered by the extension (“treated”)
  • Similar buildings built after 1980 were not covered (“untreated”)

Compare outcomes for treated and untreated buildings to estimate the effects of the law.

Results

  1. Tenants in treated areas more likely to live in San Francisco after 10 years - Rent control reduces displacement
  2. Landlords in treated areas more likely to convert buildings to condos - Overall decrease in the supply of rental housing

Unclear whether the law improved overall access to affordable housing.