Title

Local Effects of Large New Apartment Buildings in Low-Income Areas

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-5783-5557

Publication Date

8-1-2022

Source

The Review of Economics and Statistics 2021: 1–46

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 rents in nearby units by about 6 percent relative to units slightly farther away or near sites developed later, and they increase in-migration from low income areas. We show that new buildings absorb many high-income households and increase the local housing stock substantially. If buildings improve nearby amenities, the effect is not large enough to increase rents. Amenity improvements could be limited because most buildings go into already-changing neighborhoods, or buildings could create disamenities such as congestion.

DOI

https://doi.org/10.1162/rest_a_01055

Publisher

MIT Press

Subject Areas

Urban issues

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Citation

Asquith, Brian J., Evan Mast, and Davin Reed. 2021. "Local Effects of Large New Apartment Buildings in Low-Income Areas." The Review of Economics and Statistics 1–46. https://doi.org/https://doi.org/10.1162/rest_a_01055