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Can't get there from here: Affordability distance to a superstar city

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  • Ben-Shahar, Danny
  • Gabriel, Stuart
  • Golan, Roni

Abstract

This paper explores the housing affordability distance to a superstar city. Affordability distance is defined in terms of the increment to household income required to consume a quality- and consumption-adjusted housing unit in the proximate superstar city. The analysis focuses on Tel Aviv, Israel's singular superstar city. Affordability distance to Tel Aviv rose by roughly 60 percent over the 2000–2015 period. Further, affordability distance was elevated among unmarried, non-college educated, and immigrant households. The upward movement in affordability distance was associated with increased out-migration from the city. Analysis of panel data suggests that policy interventions including investment in regional transportation infrastructure and new local housing supply were effective in mediating affordability distance.

Suggested Citation

  • Ben-Shahar, Danny & Gabriel, Stuart & Golan, Roni, 2020. "Can't get there from here: Affordability distance to a superstar city," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:regeco:v:80:y:2020:i:c:s0166046217304696
    DOI: 10.1016/j.regsciurbeco.2018.04.006
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    More about this item

    Keywords

    Affordability distance; Superstar city; Housing development; Transportation infrastructure;
    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
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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