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Geographic and temporal variation in housing filtering rates

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  • Liu, Liyi
  • McManus, Doug
  • Yannopoulos, Elias

Abstract

In the field of Housing Economics, filtering is the process by which properties, as they age and depreciate in quality, tend to be occupied by lower-income households. This is the primary mechanism by which competitive markets supply low-income housing. While filtering is an important long-term source of lower-income housing at the national level, this research shows that filtering rates for owner-occupied properties vary considerably both across and within metropolitan statistical areas. Notably, in some markets, properties “filter up” to higher-income households. This paper contributes to our understanding of filtering by demonstrating the geographic and temporal heterogeneity of filtering rates and examining links between filtering, supply elasticity, and gentrification. We also explore two alternative measures of filtering based on changes in relative income rather than real income.

Suggested Citation

  • Liu, Liyi & McManus, Doug & Yannopoulos, Elias, 2022. "Geographic and temporal variation in housing filtering rates," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:regeco:v:93:y:2022:i:c:s0166046221001186
    DOI: 10.1016/j.regsciurbeco.2021.103758
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    More about this item

    Keywords

    Filtering; Affordable housing; Housing markets;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing 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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