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Does Condominium Development Lead to Gentrification?

Author

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

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 socio-economic 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

  • Leah Platt Boustan & Robert A. Margo & Matthew M. Miller & James M. Reeves & Justin P. Steil, 2019. "Does Condominium Development Lead to Gentrification?," NBER Working Papers 26170, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26170
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    Cited by:

    1. Xu, Hangtian, 2020. "Land Price Fluctuations, Commercial-Residential Segregation, and Gentrification," MPRA Paper 98844, University Library of Munich, Germany.
    2. Hangtian Xu, 2023. "Commercial‐to‐residential land‐use conversion and residential recentralization in large cities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(1), pages 306-338, February.
    3. Brian Asquith & Evan Mast & Davin Reed, 2019. "Supply Shock Versus Demand Shock: The Local Effects of New Housing in Low-Income Areas," Upjohn Working Papers 19-316, W.E. Upjohn Institute for Employment Research.
    4. Gonzalez Pampillon, Nicolas, 2019. "Spillover effects from new housing supply," LSE Research Online Documents on Economics 103446, London School of Economics and Political Science, LSE Library.
    5. Elliot Anenberg & Chun Kuang & Edward Kung, 2022. "Social learning and local consumption amenities: Evidence from Yelp," Journal of Industrial Economics, Wiley Blackwell, vol. 70(2), pages 294-322, June.
    6. Xu, Hangtian, 2019. "The burst of the real estate bubble as a promoter of gentrification in Tokyo and Osaka, 1980–2017," MPRA Paper 96803, University Library of Munich, Germany.
    7. Nicolás González-Pampillón, 2019. "Spillover effects from new housing supply," CEP Discussion Papers dp1660, Centre for Economic Performance, LSE.
    8. González-Pampillón, Nicolás, 2022. "Spillover effects from new housing supply," Regional Science and Urban Economics, Elsevier, vol. 92(C).

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    More about this item

    JEL classification:

    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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