We provide empirical evidence that increases in housing rental income lead to a larger supply response than price increases of the same percentage value. We rationalize this differential in supply responsiveness with an amplification mechanism arising from a downward revision of capitalization rates following a rental income increase. We document that the amplification of the housing supply price elasticity is less pronounced in geographically constrained and tightly regulated neighborhoods and areas having more sophisticated investors. Our findings hold valuable lessons for public policies affecting the housing rental income, such as rent control and housing subsidies.

我们提供的经验证据表明，与相同百分比值的价格上涨相比，住房租金收入的增加会导致更大的供应反应。我们通过在租金收入增加后资本化率下调所产生的放大机制来合理化这种供应反应差异。我们记录到，在地理限制和严格监管的社区和拥有更成熟投资者的地区，住房供应价格弹性的放大不那么明显。我们的研究结果为影响住房租金收入的公共政策提供了宝贵的经验，例如租金管制和住房补贴。