Main finding
New supply reduced rents across the quality distribution and expanded the availability of second-hand homes, including in high-demand markets.
A 1% increase in annual new supply lowered average rents by 0.19%
The Impact of New Housing Supply on the Distribution of Rents
Mense
Most important limitation
The setting is Germany and the outcome is posted rather than contract rent.
From the publication
Inspect the authors' figure directly
Figure 3 · Impact of new housing supply on the distribution of rents
Every rent-quality decile has a negative estimate; the vertical bars show 95% confidence intervals.
REDRAWN FROM STUDY DATAFigure 3 · Impact of new housing supply on the distribution of rents
| Rent-quality decile | Quality-adjusted posted rent |
|---|---|
| Lowest rent | -0.15 |
| 2 | -0.16 |
| 3 | -0.17 |
| 4 | -0.18 |
| 5 | -0.19 |
| 6 | -0.2 |
| 7 | -0.21 |
| 8 | -0.22 |
| Highest rent | -0.24 |
How this study is used
Claims this evidence supports
Reference
Mense (2025). “The Impact of New Housing Supply on the Distribution of Rents.”