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Effects of Rent-Controlled Public Housing on the Supply of Private RentedHousing and Household Mobility in Malawi: A Case Study of Malawi Housing Corporation

Received: 13 September 2017     Accepted: 29 September 2017     Published: 26 February 2018
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Abstract

Despite global policy shift towards liberalization of the housing market, different forms of rent control have still remained in a number of countries. Most of these controls are currently uphold by the view that they are different from the old forms that involved complete freezing of the nominal rents. Generally, this view has been sustained by lack of in-depth studies on the remaining forms of rent control. This paper fills this gap by examining the effects of rent-controlled public housing sector on the supply of private rent housing and household mobility in Malawi. The findings from Malawi demonstrate that the effects of rent control are varied and depend on the nature of residential market as well as the political environment under which the rent controls are implemented. Under dictatorial regime, rent controlsin Malawi produced negative effects on both the supply of private rent housing and household mobility. This is consistent with existing studies from many other countries. However, after adoption of liberal democracy and economic policies, rent controlhas produces varied outcomes. While its effect on constraining household mobility remains undisputable, rent control in the public housing sector has insignificant effect on the supply of private rented housing. These differences may be explained by the fact that during dictatorial regime private housing sector in the country was also de facto under rent control.

Published in American Journal of Theoretical and Applied Business (Volume 4, Issue 1)
DOI 10.11648/j.ajtab.20180401.11
Page(s) 1-7
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Malawi, Rent Control, Public Housing, Household Mobility, Private Rented Housing

References
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[4] Ball., M. (2010). The UK private rented sector as a source of Affordable housing. JFR Housing Marketing Taskforce.
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[7] Block, W., Horton, J. and Shorter., E. (1998). Rent Control: An Economic Abomination in International Journal of Value-Based Management 11, 253-263.
[8] Block, W., Olsen E. (Ed) (1981). Rent Control: Myths and Realities. International Evidence of Rent Control in Six Countries, Fraser Institute.
[9] Booth et al., (2006) Drivers of Change and Development in Malawi, Working Paper No. 261 ODI, London.
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  • APA Style

    Sane Pashane Zuka. (2018). Effects of Rent-Controlled Public Housing on the Supply of Private RentedHousing and Household Mobility in Malawi: A Case Study of Malawi Housing Corporation. American Journal of Theoretical and Applied Business, 4(1), 1-7. https://doi.org/10.11648/j.ajtab.20180401.11

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    ACS Style

    Sane Pashane Zuka. Effects of Rent-Controlled Public Housing on the Supply of Private RentedHousing and Household Mobility in Malawi: A Case Study of Malawi Housing Corporation. Am. J. Theor. Appl. Bus. 2018, 4(1), 1-7. doi: 10.11648/j.ajtab.20180401.11

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    AMA Style

    Sane Pashane Zuka. Effects of Rent-Controlled Public Housing on the Supply of Private RentedHousing and Household Mobility in Malawi: A Case Study of Malawi Housing Corporation. Am J Theor Appl Bus. 2018;4(1):1-7. doi: 10.11648/j.ajtab.20180401.11

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  • @article{10.11648/j.ajtab.20180401.11,
      author = {Sane Pashane Zuka},
      title = {Effects of Rent-Controlled Public Housing on the Supply of Private RentedHousing and Household Mobility in Malawi: A Case Study of Malawi Housing Corporation},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {4},
      number = {1},
      pages = {1-7},
      doi = {10.11648/j.ajtab.20180401.11},
      url = {https://doi.org/10.11648/j.ajtab.20180401.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20180401.11},
      abstract = {Despite global policy shift towards liberalization of the housing market, different forms of rent control have still remained in a number of countries. Most of these controls are currently uphold by the view that they are different from the old forms that involved complete freezing of the nominal rents. Generally, this view has been sustained by lack of in-depth studies on the remaining forms of rent control. This paper fills this gap by examining the effects of rent-controlled public housing sector on the supply of private rent housing and household mobility in Malawi. The findings from Malawi demonstrate that the effects of rent control are varied and depend on the nature of residential market as well as the political environment under which the rent controls are implemented. Under dictatorial regime, rent controlsin Malawi produced negative effects on both the supply of private rent housing and household mobility. This is consistent with existing studies from many other countries. However, after adoption of liberal democracy and economic policies, rent controlhas produces varied outcomes. While its effect on constraining household mobility remains undisputable, rent control in the public housing sector has insignificant effect on the supply of private rented housing. These differences may be explained by the fact that during dictatorial regime private housing sector in the country was also de facto under rent control.},
     year = {2018}
    }
    

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    T2  - American Journal of Theoretical and Applied Business
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    AB  - Despite global policy shift towards liberalization of the housing market, different forms of rent control have still remained in a number of countries. Most of these controls are currently uphold by the view that they are different from the old forms that involved complete freezing of the nominal rents. Generally, this view has been sustained by lack of in-depth studies on the remaining forms of rent control. This paper fills this gap by examining the effects of rent-controlled public housing sector on the supply of private rent housing and household mobility in Malawi. The findings from Malawi demonstrate that the effects of rent control are varied and depend on the nature of residential market as well as the political environment under which the rent controls are implemented. Under dictatorial regime, rent controlsin Malawi produced negative effects on both the supply of private rent housing and household mobility. This is consistent with existing studies from many other countries. However, after adoption of liberal democracy and economic policies, rent controlhas produces varied outcomes. While its effect on constraining household mobility remains undisputable, rent control in the public housing sector has insignificant effect on the supply of private rented housing. These differences may be explained by the fact that during dictatorial regime private housing sector in the country was also de facto under rent control.
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Author Information
  • Department of Land Economy, University of Malawi, Blantyre, Malawi

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