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JUE Insight: City-wide effects of new housing supply: Evidence from moving chains

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  • Bratu, Cristina
  • Harjunen, Oskari
  • Saarimaa, Tuukka

Abstract

We study the city-wide effects of new, centrally-located market-rate housing supply using geo-coded population-wide register data from the Helsinki Metropolitan Area. The supply of new market rate units triggers moving chains that quickly reach middle- and low-income neighborhoods and individuals. Thus, new market-rate construction loosens the housing market in middle- and low-income areas even in the short run. Market-rate supply is likely to improve affordability outside the sub-markets where new construction occurs and to benefit low-income people.

Suggested Citation

  • Bratu, Cristina & Harjunen, Oskari & Saarimaa, Tuukka, 2023. "JUE Insight: City-wide effects of new housing supply: Evidence from moving chains," Journal of Urban Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:juecon:v:133:y:2023:i:c:s0094119022001048
    DOI: 10.1016/j.jue.2022.103528
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    References listed on IDEAS

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    1. Saiz, Albert, 2023. "The Global Housing Affordability Crisis: Policy Options and Strategies," IZA Policy Papers 203, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Housing supply; Housing affordability; Filtering;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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