US EditionBad Weather Proved It: New Housing Helps All Renters, German Study Shows
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Bad Weather Proved It: New Housing Helps All Renters, German Study Shows
Photo by Kankan on UnsplashA new study in the Journal of Political Economy Macroeconomics ("The Impact of New Housing Supply on the Distribution of Rents" by Andreas Mense) shows how building new housing affects rental prices. The study uses weather-related construction delays in Germany as a natural experiment.Why it matters: The study provides the first causal evidence that building market-rate housing helps reduce rents even for lower-income …
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