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imposition of rent control will lead to the capitalization of future rent savings when a coach is sold. That is, the buyer will not only pay for the coach but also for the net present value of the expected savings associated with the future pad rent obligation to the landlord. Our results support the hypothesis based on a more extensive and timely data set than had been employed in similar prior studies in California. Using pooled data from seven counties in California, before 1993, a flexible rent control regime results in real growth rates in prices 1.69 percentage points less than overall growth rates, while a rigid regime yields real growth rates in prices 0.19 percentage points less; after 1993, a flexible regime results in real growth rates in prices 0.57 percentage points less than overall growth rates, while a rigid regime yields real growth rates in prices 1.11 percentage points greater. After 1993, for communities with rigid rent control regimes, the rates of real price increases for coaches was positive and significant in six of the seven counties included in our data set. In general, rates of price increase were higher after 1993 and in communities with rigid rent control regimes (no vacancy decontrol). Hybrid weighted repeat sale price indexes tracking rent controlled and non -rent controlled units in the seven counties from 1983 to 2003 show that prices of rent controlled units have increased 153 percent while units not subject to rent control have increased in price 136 percent, a difference of 17 percentage points. The current spread between the two indexes began in the second quarter of 1993. We attribute this, first, to the increasing share of transactions falling within rent controlled jurisdictions due to both higher raw numbers and the onset of rent control in more jurisdictions and second, to the change in the legal environment resulting from the Yee v. City of Escondido decision.