Charles Explorer logo
🇬🇧

Rent deregulation, tenure choice, and real estate price expectations

Publication

Abstract

We study a natural experiment in the Czech Republic where the maximum regulated rent appreciation has depended explicitly on the price of real estate since 2007. We track the tenure choice of households from consumption surveys for subsequent years.

Rent deregulation makes households in regulated apartments more likely to own real estate while the opposite is true for other renters and owners.