Does a Lack of Competition Exacerbate Inflation? A Case Study of Florida Rental Markets

23 Pages Posted: 11 Dec 2022

See all articles by Jacob Linger

Jacob Linger

Econ One Research

Hal J. Singer

Econ One

Ted Tatos

EconONE / Univ. of Utah Adjunct Prof.

Date Written: December 6, 2022

Abstract

Specific sectors of the U.S. economy, such as electricity, rental, and food, substantially contribute to overall inflation, and each of these sectors has experienced increasing concentration, which may exacerbate inflation, by, inter alia, facilitating price coordination. To investigate this relationship, we examine all non-owner-occupied housing properties, as well as all multifamily properties, in Florida, areas of which have exhibited rampant inflation. For each Census Tract in the state, we analyze the consolidation of property ownership from 2015 through 2022. We then test whether such consolidation explains increases in rental prices or increases in rental inflation or both, controlling for other potentially confounding factors. We find economically and statistically significant effects in both relationships. The policy implication of such findings is that, rather than leaning on the Federal Reserve to combat rental inflation by raising interest rates, legislative bodies or regulatory authorities could impose ownership limits on holdings within a given Census Tract.

Suggested Citation

Linger, Jacob and Singer, Hal J. and Tatos, Ted, Does a Lack of Competition Exacerbate Inflation? A Case Study of Florida Rental Markets (December 6, 2022). Available at SSRN: https://ssrn.com/abstract=4295000 or http://dx.doi.org/10.2139/ssrn.4295000

Jacob Linger

Econ One Research ( email )

805 15th Street
Suite 501
Washington, DC 20005
United States

Hal J. Singer (Contact Author)

Econ One ( email )

805 15th Street
Suite 501
Washington, DC 20005
United States
202.312.3065 (Phone)

HOME PAGE: http://https://www.econone.com/staff-member/hal-singer/

Ted Tatos

EconONE / Univ. of Utah Adjunct Prof. ( email )

1645 E. Campus Center
Salt Lake City, UT 84112
United States

HOME PAGE: http://https://utah.academia.edu/TedTatos

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