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JUE Insight: Condominium development does not lead to gentrification

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Listed:
  • Boustan, Leah
  • Margo, Robert A.
  • Miller, Matthew M.
  • Reeves, James
  • Steil, Justin

Abstract

Many politicians and voters believe that condominium development hastens gentrification. Indeed, there is a strong positive correlation between the presence of condos in a neighborhood and resident socioeconomic status. We leverage the introduction of municipal regulations to study the causal effect of condo conversions on neighborhood attributes. Cities that restricted condo conversions experience a persistent decline in the condo share of the housing stock, relative to their neighboring suburbs and compared to metropolitan areas without such restrictions, even at city/suburb borders. Yet, areas with a higher condo share due to local regulations do not have residents with higher income or education levels.

Suggested Citation

  • Boustan, Leah & Margo, Robert A. & Miller, Matthew M. & Reeves, James & Steil, Justin, 2023. "JUE Insight: Condominium development does not lead to gentrification," Journal of Urban Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:juecon:v:133:y:2023:i:c:s0094119022001000
    DOI: 10.1016/j.jue.2022.103524
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    More about this item

    Keywords

    Condominium; Gentrification; Municipal regulations; City/suburb borders;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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