The Regulation of Immobile Housing Assets Under Divided Ownership

The paper analyses a particular type of housing arrangement between owner of a housing unit and owner of the land on which it is sited, where the unit is partially or totally immobile. While the focus is on mobile-home parks, the analysis is also applicable to certain condominium and cooperative housing. After exploring reasons for divided asset ownership, the possibility that divided ownership of immobile housing assets can lead to opportunistic behavior in the form of rent increases and even “gouging” is discussed. Rent control and its effects are examined with emphasis on the resulting wealth transfer from landlord to tenant and the reduction in the number of new parks. Results from an empirical analysis of both issues are presented. While there is strong evidence of a wealth transfer to tenants after rent control enactment, it is not clear whether these gains are offset by losses occurred by tenants prior to enactment. © 1999 by Elsevier Science Inc.