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Is the 'Shop Around the Corner' a Luxury or a Nuisance? The relationship between income and neighborhood retail patterns

Author

Listed:
  • Jenny Schuetz
  • Jed Kolko
  • Rachel Meltzer

Abstract

Affluent neighborhoods present a potentially attractive location for retail establishments because of their higher purchasing power and demand for a wide range of specialized goods and services. However, if high income households perceive retail in general – or certain types of retail, such as Big Box stores – as an undesirable use, they may be able to block commercial development through zoning and the political process. In thispaper we shed light on these issues by examining the relationship betweenneighborhood income and several different types of retail presence for 58 large U.S metropolitan areas. We combine detailed data from the National Establishment TimeSeries database on retail establishments and employment, by industry category and firm type, with Census data on ZCTA income and demographics. Results indicate that retail density varies with income for certain retail types, such as food service and chain supermarkets and drugstores. In addition, average establishment size increases with income for all retail types. Retail density increases with population density, as expected, and decreases with distance to CBD and with share of owner-occupied housing.

Suggested Citation

  • Jenny Schuetz & Jed Kolko & Rachel Meltzer, 2010. "Is the 'Shop Around the Corner' a Luxury or a Nuisance? The relationship between income and neighborhood retail patterns," Working Paper 8513, USC Lusk Center for Real Estate.
    • Handle: RePEc:luk:wpaper:8513
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    File URL: http://lusk.usc.edu/sites/default/files/working_papers/wp_2010_1005.pdf
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    References listed on IDEAS

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    Cited by:

    1. Rachel Meltzer & Jenny Schuetz, 2010. "Bodegas or Bagel Shops? Neighborhood Differences in Retail & Household Services," Working Paper 33, USC Lusk Center for Real Estate.
    2. Cristina Mateos-Mora & María Rosa Herrera-Gutiérrez & Cristina González-Benítez, 2021. "The Impacts of Area-Based Policies on Essential Retail in Vulnerable Areas," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    3. Rachel Meltzer & Jenny Schuetz, 2012. "Bodegas or Bagel Shops? Neighborhood Differences in Retail and Household Services," Economic Development Quarterly, , vol. 26(1), pages 73-94, February.

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