THe Blog

February 16, 2018

Mumbai's Rent Control Problem

This Mint article quotes Junior Fellow Vaidehi Tandel's paper (with Shirish Patel, Sahil Gandhi, Abhay Pethe and Kabir Agarwal) on rent control. Excerpts:


"In a 2015 paper, Decline Of Rental Housing In India: The Case Of Mumbai, Vaidehi Tandel, Shirish Patel, Sahil Gandhi, Abhay Pethe and Kabir Agarwal have looked at the outcomes, examining data from the new property tax cell of the municipal corporation of Greater Mumbai. The results are unsurprising. In 1961, self-occupied and tenanted housing were in about equal proportion. Between 1961 and 2010, about 95% of residential construction was for ownership and only 5% for rental. This crunch, compounded by a floor space index that is, unfathomably, among the lowest of any major city, leaves migrants with few options. Home ownership is for a small minority, given elevated prices and the difficulty of accessing credit. Another minority may be able to afford the high rentals in the slender slice of the market that comprises unrestricted rental housing. For the rest, there are the slums—or rental housing in far-flung areas, adding to the burgeoning economic cost of traffic congestion in the city and burdening its infrastructure further."


Read the whole article here.

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