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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. zu Ermgassen, Sophus O.S.E. & Drewniok, Michal P. & Bull, Joseph W. & Corlet Walker, Christine M. & Mancini, Mattia & Ryan-Collins, Josh & Cabrera Serrenho, André, 2022. "A home for all within planetary boundaries: Pathways for meeting England's housing needs without transgressing national climate and biodiversity goals," Ecological Economics, Elsevier, vol. 201(C).
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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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