We empirically document that the effectiveness of the German rent control introduced in 2015 in achieving rental housing affordability is limited. Exploring the reasons for this limited effectiveness we focus on the impact of the rent control on the yield on rental housing investments proxied by...

This paper empirically analyzes the effects of a second generation rent control. We make use of an uncommon policy intervention in the German housing market and translate the generated variation into a difference-and-differences setup, augmented with elements of a discontinuity design, to...