In this IAB-Discussion Paper the author estimates the impact of new housing supply on the local rent distribution, exploiting delays in housing completions caused by weather shocks during the construction phase. Increasing the flow of new supply by 1 percent lowers average rents by 0.2 percent, and increases disproportionately the number of second-hand units offered for rent.
Secondary Housing Supply
IAB Researcher Andreas Mense estimates in this Discussion Paper the impact of new housing supply on the local rent distribution.