Advanced Search
MyIDEAS: Login to save this paper or follow this series

Gentrification and Neighborhood Housing Cycles: Will America's Future Downtowns be Rich?

Contents:

Author Info

  • Jan K. Brueckner
  • Stuart S. Rosenthal

Abstract

This paper identifies a new factor, the age of the housing stock, that affects where high- and low-income neighborhoods are located in U.S. cities. High-income households, driven by a high demand for housing services, will tend to locate in areas of the city where the housing stock is relatively young. Because cities develop and redevelop from the center outward over time, the location of these neighborhoods varies over the city’s history. The model predicts a suburban location for the rich in an initial period, when young dwellings are found only in the suburbs, while predicting eventual gentrification once central redevelopment creates a young downtown housing stock. Empirical work indicates that if the influence of spatial variation in dwelling ages were eliminated, longstanding central city/suburban disparities in neighborhood economic status would be reduced by up to 50 percent. Model estimates further predict that between 2000 and 2020, central-city/suburban differences in economic status will widen somewhat in smaller cities but narrow sharply in the largest American cities as they become more gentrified.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2005/wp-cesifo-2005-10/cesifo1_wp1579.pdf
Download Restriction: no

Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1579.

as in new window
Length:
Date of creation: 2005
Date of revision:
Handle: RePEc:ces:ceswps:_1579

Contact details of provider:
Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Email:
Web page: http://www.cesifo.de
More information through EDIRC

Related research

Keywords: spatial expansion of cities; housing cycles; urban expansion;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Braid, Ralph M., 1986. "The comparative statics of a filtering model of housing with two income groups," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 16(3), pages 437-448, August.
  2. Wheaton, William C, 1977. "Income and Urban Residence: An Analysis of Consumer Demand for Location," American Economic Review, American Economic Association, American Economic Association, vol. 67(4), pages 620-31, September.
  3. Kern, Clifford R., 1981. "Upper-income renaissance in the city: Its sources and implications for the city's future," Journal of Urban Economics, Elsevier, vol. 9(1), pages 106-124, January.
  4. BRUECKNER, Jan K. & THISSE, Jacques-François & ZENOU, Yves, . "Why is central Paris rich and downtown Detroit poor? An amenity-based theory," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1370, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Coulson, N Edward & Bond, Eric W, 1990. "A Hedonic Approach to Residential Succession," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 433-44, August.
  6. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
  7. Brueckner, Jan K., 1981. "A dynamic model of housing production," Journal of Urban Economics, Elsevier, vol. 10(1), pages 1-14, July.
  8. Edward L. Glaeser & Joseph Gyourko, 2001. "Urban Decline and Durable Housing," NBER Working Papers 8598, National Bureau of Economic Research, Inc.
  9. Braid, Ralph M., 2001. "Spatial Growth and Redevelopment with Perfect Foresight and Durable Housing," Journal of Urban Economics, Elsevier, vol. 49(3), pages 425-452, May.
  10. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do The Poor Live In Cities?," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1891, Harvard - Institute of Economic Research.
  11. Rosenthal Stuart S. & Helsley Robert W., 1994. "Redevelopment and the Urban Land Price Gradient," Journal of Urban Economics, Elsevier, vol. 35(2), pages 182-200, March.
  12. Brueckner, Jan K., 1980. "Residential succession and land-use dynamics in a vintage model of urban housing," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 10(2), pages 225-240, June.
  13. Aaronson, Daniel, 2001. "Neighborhood Dynamics," Journal of Urban Economics, Elsevier, vol. 49(1), pages 1-31, January.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Vigdor, Jacob L., 2010. "Is urban decay bad? Is urban revitalization bad too?," Journal of Urban Economics, Elsevier, vol. 68(3), pages 277-289, November.
  2. Richter, Felix & Ahlfeldt, Gabriel & Maennig, Wolfgang, 2013. "Urban renewal after the Berlin Wall," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order, Verein für Socialpolitik / German Economic Association 79789, Verein für Socialpolitik / German Economic Association.
  3. Jones, David J., 2012. "Primary prevention and health outcomes: Treatment of residential lead-based paint hazards and the prevalence of childhood lead poisoning," Journal of Urban Economics, Elsevier, vol. 71(1), pages 151-164.
  4. Epple, Dennis & Ferreyra, Maria Marta, 2008. "School finance reform: Assessing general equilibrium effects," Journal of Public Economics, Elsevier, Elsevier, vol. 92(5-6), pages 1326-1351, June.
  5. William Sander & William Testa, 2013. "Parent's Education , School-Age Children, and Household Location in American Cities," ERSA conference papers ersa13p54, European Regional Science Association.
  6. Eriksen, Michael D. & Rosenthal, Stuart S., 2010. "Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program," Journal of Public Economics, Elsevier, Elsevier, vol. 94(11-12), pages 953-966, December.
  7. Leah Platt Boustan & Devin Bunten & Owen Hearey, 2013. "Urbanization in the United States, 1800-2000," NBER Working Papers 19041, National Bureau of Economic Research, Inc.
  8. Gabriel Ahlfeldt, 2010. "Blessing or Curse? Appreciation, Amenities and Resistance around the Berlin "Mediaspree"," Working Papers 032, Chair for Economic Policy, University of Hamburg.
  9. Larson, William & Liu, Feng & Yezer, Anthony, 2012. "Energy footprint of the city: Effects of urban land use and transportation policies," Journal of Urban Economics, Elsevier, vol. 72(2), pages 147-159.
  10. Schuetz, Jenny & Kolko, Jed & Meltzer, Rachel, 2012. "Are poor neighborhoods “retail deserts”?," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 42(1-2), pages 269-285.
  11. Duranton, Gilles & Puga, Diego, 2013. "The growth of cities," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9590, C.E.P.R. Discussion Papers.
  12. Dennis N. Epple & Maria Marta Ferreyra, 2007. "School Finance Reform: Assessing General Equilibrium Effects," NBER Working Papers 13524, National Bureau of Economic Research, Inc.
  13. Laudo M Ogura, 2014. "What drove gentrification in Chicago community areas in the 2000s?," Economics Bulletin, AccessEcon, vol. 34(2), pages 1045-1054.
  14. Christian A. L. Hilber & Jan Rouwendal & Wouter Vermeulen, 2014. "Local Economic Conditions and the Nature of New Housing Supply," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0164, Spatial Economics Research Centre, LSE.
  15. Hans R. A. Koster & Piet Rietveld & Jos Van Ommeren, 2013. "Historic Amenities, Income and Sorting of Households," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0124, Spatial Economics Research Centre, LSE.
  16. Ellickson, Paul B. & Grieco, Paul L.E., 2013. "Wal-Mart and the geography of grocery retailing," Journal of Urban Economics, Elsevier, vol. 75(C), pages 1-14.
  17. Meltzer, Rachel, 2012. "Understanding Business Improvement District formation: An analysis of neighborhoods and boundaries," Journal of Urban Economics, Elsevier, vol. 71(1), pages 66-78.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_1579. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.