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City-wide effects of new housing supply: Evidence from moving chains

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  • Bratu, Cristina
  • Harjunen, Oskari
  • Saarimaa, Tuukka

Abstract

We study the city-wide effects of new, centrally-located market-rate housing supply using geo-coded total population register data from the Helsinki Metropolitan Area. The supply of new market rate units triggers moving chains that quickly reach middle- and low-income neighborhoods and individuals. Thus, new market-rate construction loosens the housing market in middle- and low-income areas even in the short run. Market-rate supply is likely to improve affordability outside the sub-markets where new construction occurs and to benefit low-income people.

Suggested Citation

  • Bratu, Cristina & Harjunen, Oskari & Saarimaa, Tuukka, 2021. "City-wide effects of new housing supply: Evidence from moving chains," Working Papers 146, VATT Institute for Economic Research.
    • Handle: RePEc:fer:wpaper:146
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    File URL: https://www.doria.fi/handle/10024/181666
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    1. A Win for Devin Nunes in Lawsuit Over Journalist Ryan Lizza's Tweet
      by Elizabeth Nolan Brown in Hit & Run blog on 2021-09-16 13:41:02

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    2. Chatman, Daniel G. PhD & Barbour, Elisa PhD & Kerzhner, Tamara & Manville, Michael PhD & Reid, Carolina PhD, 2023. "Policies to Improve Transportation Sustainability, Accessibility, and Housing Affordability in the State of California," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt03z7t8r1, Institute of Transportation Studies, UC Berkeley.
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    More about this item

    Keywords

    Housing supply; Housing affordability; Filtering; Local public finance and provision of public services; R31; R21; R23; Housing policy;
    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
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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