Housing Policies and Technologies

Thesis Defence
Housing Policies and Technologies

Michael ABEL,
PhD candidate in the PhD programme ESCP, publicly defended his PhD thesis in Management Sciences.

January 13th, 2025
10:00 (CET)
ESCP Madrid Campus or online via Zoom

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Abstract

In a world increasingly shaped by external shocks, such as governmental policies or technological advancements, housing markets stand as critical yet fragile pillars of socio-economic stability. This dissertation examines the multifaceted impacts of such shocks on housing markets and pricing dynamics, shedding light on how interventions reshape companies and markets.

This thesis comprises four interrelated chapters, each contributing to a deeper understanding of housing market dynamics. The first chapter explores the effects of dynamic pricing strategies in the hostel industry, driven by artificial intelligence and machine learning. Using data from a leading European hostel chain, the study highlights the benefits and initial challenges of adopting data-driven pricing technologies, offering insights into their potential for impacting real estate revenue management.

The second chapter examines the consequences of rent control policies by analyzing a rent control policy introduced in several cities in Catalonia, Spain, in September 2020. Leveraging a quasi-experimental approach with rich micro-data, the study reveals short-term rent reductions but highlights long-term market distortions, including decreased rental supply and reduced property sale prices, potentially undermining the policy's goals.

Building on these findings, the third chapter presents a systematic literature review on rent control, offering a comprehensive perspective on its short-term benefits and long-term challenges. It emphasizes the need for alternative policies, such as social insurance programs, to address housing affordability more effectively.

Finally, the fourth chapter examines the strategic response of a real estate investment trust (REIT) to Catalonia's rent control legislation. The case study underscores the unintended consequences of regulatory interventions, including shifts in investment strategies and market divestments.

By combining empirical analysis, case studies, and literature reviews, this dissertation provides a comprehensive evaluation of the interplay between policy, technology, and market dynamics in shaping housing outcomes.

Jury