IDEAS home Printed from
   My bibliography  Save this article

Impacts of the Community Reinvestment Act on Neighborhood Change and Gentrification


  • John Fitzgerald
  • Samuel P. Vitello


The Community Reinvestment Act (CRA) encourages bank lending in low- and moderate-income areas. We use a regression discontinuity design that exploits the relative-income threshold that distinguishes CRA-eligible from ineligible neighborhoods (census tracts) and find little evidence that CRA has contributed to neighborhood changes associated with gentrification in eligible areas. Over the 1989-1999 period, we find that eligible tracts had greater increases in mean income relative to ineligible tracts, but we find little evidence that the CRA caused decreases in the proportion of long-term residents or increases in the proportion of White or college-educated residents.

Suggested Citation

  • John Fitzgerald & Samuel P. Vitello, 2014. "Impacts of the Community Reinvestment Act on Neighborhood Change and Gentrification," Housing Policy Debate, Taylor & Francis Journals, vol. 24(2), pages 446-466, April.
  • Handle: RePEc:taf:houspd:v:24:y:2014:i:2:p:446-466
    DOI: 10.1080/10511482.2013.858364

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Eric S. Belsky & Michael H. Schill & Anthony M.J. Yezer, 2001. "The effect of the Community Reinvestment Act of bank and thrift home purchase mortgage lending," Proceedings 794, Federal Reserve Bank of Chicago.
    2. Robert B. Avery & Paul S. Calem & Glenn B. Canner, 2003. "The effects of the Community Reinvestment Act on local communities," Proceedings 878, Federal Reserve Bank of Chicago.
    3. Bostic Raphael & Paulson Anna L & Mehran Hamid & Saidenberg Marc, 2005. "Regulatory Incentives and Consolidation: The Case of Commercial Bank Mergers and the Community Reinvestment Act," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-27, April.
    4. Neil Bhutta, 2008. "Giving credit where credit is due? the Community Reinvestment Act and mortgage lending in lower-income neighborhoods," Finance and Economics Discussion Series 2008-61, Board of Governors of the Federal Reserve System (US).
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:houspd:v:24:y:2014:i:2:p:446-466. 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: (Chris Longhurst). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.