Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228419
Authors: 
Asquith, Brian J.
Mast, Evan
Reed, Davin
Year of Publication: 
2019
Series/Report no.: 
Upjohn Institute Working Paper No. 19-316
Abstract: 
We study the local effects of new market-rate housing in low-income areas using microdata on large apartment buildings, rents, and migration. New buildings decrease nearby rents by 5 to 7 percent relative to locations slightly farther away or developed later, and they increase in-migration from low-income areas. Results are driven by a large supply effect - we show that new buildings absorb many high-income households - that overwhelms any offsetting endogenous amenity effect. The latter may be small because most new buildings go into already-changing areas. Contrary to common concerns, new buildings slow local rent increases rather than initiate or accelerate them.
Subjects: 
housing supply
housing affordability
gentrification
amenities
JEL: 
R21
R23
R31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.