2018
Abstract:
The Government of Cuba has recently allowed its citizens to buy, sell, and rent property as part of
a broader set of reforms that foster land market liberalization and micro-entrepreneurship by way
of self-employment. For the Cuban government, this set of policies addresses the dual goals of
creating wealth and increasing the housing stock. Such changes, however, could favor one goal to
the detriment of the other. This research will assess how the formalization of rental markets and
micro-entrepreneurship in Cuba affects access to affordable housing and the possibilities of market
entry for landlords. I developed hedonic pricing models using online rental ads to analyze the
interactions between short- and long-term rental markets in Havana. I also interviewed property
owners to analyze the dynamics of their social network, as well as state and non-government actors
involved in the emerging land market, and review existing policies to assess barriers to market
entry. Results from this research project provide insight into possible spillover effects from
property regularization in urban areas in a globalizing and digital context, as well as possible
institutional barriers that hinder entry to housing rental markets in transitioning economies.
