Title
Local Effects of Large New Apartment Buildings in Low-Income Areas
Upjohn Author ORCID Identifier
Publication Date
8-1-2022
Source
The Review of Economics and Statistics 2023: 1–17
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
10.1162/rest_a_01055
Publisher
MIT Press
Subject Areas
Regional collaboration; Urban issues; Transportation and infrastructure
Citation
Asquith, Brian J., Evan Mast, and Davin Reed. 2023. "Local Effects of Large New Apartment Buildings in Low-Income Areas." The Review of Economics and Statistics 1–17. https://doi.org/10.1162/rest_a_01055