Arbeitspapier
Supply shock versus demand shock: The local effects of new housing in low-income areas
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.
- Language
-
Englisch
- Bibliographic citation
-
Series: Upjohn Institute Working Paper ; No. 19-316
- Classification
-
Wirtschaft
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Housing Supply and Markets
- Subject
-
housing supply
housing affordability
gentrification
amenities
- Event
-
Geistige Schöpfung
- (who)
-
Asquith, Brian J.
Mast, Evan
Reed, Davin
- Event
-
Veröffentlichung
- (who)
-
W.E. Upjohn Institute for Employment Research
- (where)
-
Kalamazoo, MI
- (when)
-
2019
- DOI
-
doi:10.17848/wp19-316
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Asquith, Brian J.
- Mast, Evan
- Reed, Davin
- W.E. Upjohn Institute for Employment Research
Time of origin
- 2019
Other Objects (12)
A theory of housing demand shocks
Housing demand shocks and households' balance sheets
World Crisis and Protecting Low-Income Countries Against Exogenous Shocks
Housing for India's low-income urban households: A demand perspective
Housing demand shocks, foreign labour inflows and consumption
Low-Income Housing Finance in Colombia
Financial Deepening, Terms of Trade Shocks, and Growth Volatility in Low-Income Countries
Risk shocks and housing markets
Risk shocks and housing markets
Improving income and housing : employment generation in low-income settlements
Integrated Planning Support System for Low-Income Housing
The cost of housing for low-income renters
A theory of housing demand shocks
Housing demand shocks and households' balance sheets
World Crisis and Protecting Low-Income Countries Against Exogenous Shocks
Housing for India's low-income urban households: A demand perspective
Housing demand shocks, foreign labour inflows and consumption
Low-Income Housing Finance in Colombia
Financial Deepening, Terms of Trade Shocks, and Growth Volatility in Low-Income Countries
Risk shocks and housing markets
Risk shocks and housing markets
Improving income and housing : employment generation in low-income settlements
Integrated Planning Support System for Low-Income Housing
The cost of housing for low-income renters
A theory of housing demand shocks
Housing demand shocks and households' balance sheets
World Crisis and Protecting Low-Income Countries Against Exogenous Shocks
Housing for India's low-income urban households: A demand perspective
Housing demand shocks, foreign labour inflows and consumption
Low-Income Housing Finance in Colombia
Financial Deepening, Terms of Trade Shocks, and Growth Volatility in Low-Income Countries
Risk shocks and housing markets
Risk shocks and housing markets
Improving income and housing : employment generation in low-income settlements
Integrated Planning Support System for Low-Income Housing