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Urban Revival in America, 2000 to 2010

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  • Victor Couture
  • Jessie Handbury

Abstract

This paper documents and explains the striking rise in the proclivity of college-educated individuals to reside near city centers since 2000. We show that this recent urban revival is driven almost entirely by younger college graduates in larger cities. With a residential choice model, we quantify the role of jobs, amenities, and house prices in explaining this trend. We find that the rising taste of young college graduates for non-tradable service amenities like restaurants and nightlife accounts for more than 40 percent of their movement toward city centers. Complementary data shows a corresponding rise in young college graduate expenditures on and trips to non-tradable services. We then link changes in both consumption and urbanization to secular trends of top income growth and delayed family formation amongst young college graduates.

Suggested Citation

  • Victor Couture & Jessie Handbury, 2017. "Urban Revival in America, 2000 to 2010," NBER Working Papers 24084, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24084
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    Cited by:

    1. Owens, Raymond E. & Rossi-Hansberg, Esteban & Sarte, Pierre-Daniel G., 2017. "Rethinking Detroit," Working Paper 17-4, Federal Reserve Bank of Richmond.
    2. Ingrid Gould Ellen & Keren Mertens Horn & Davin Reed, 2017. "Has Falling Crime Invited Gentrification?," Working Papers 17-27, Center for Economic Studies, U.S. Census Bureau.
    3. repec:spr:anresc:v:59:y:2017:i:3:d:10.1007_s00168-016-0777-2 is not listed on IDEAS
    4. Elliot Anenberg & Edward Kung, 2018. "Can More Housing Supply Solve the Affordability Crisis? Evidence from a Neighborhood Choice Model," Finance and Economics Discussion Series 2018-035, Board of Governors of the Federal Reserve System (US).
    5. repec:eee:jhouse:v:40:y:2018:i:c:p:83-94 is not listed on IDEAS
    6. Gaign�, Carl & Koster, Hans R.A. & Moizeau, Fabien & Thisse, Jacques-Fran�ois, 2017. "Amenities and the Social Structure of Cities," CEPR Discussion Papers 11958, C.E.P.R. Discussion Papers.
    7. Neumann, Uwe & Taruttis, Lisa, 2018. "Sorting in an urban housing market - is there a response to demographic change?," Ruhr Economic Papers 784, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Burns, Kalee & Hotchkiss, Julie L., 2019. "Migration Constraints and Disparate Responses to Changing Job Opportunities," FRB Atlanta Working Paper 2019-1, Federal Reserve Bank of Atlanta, revised 15 May 2019.
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    11. Nathaniel Baum-Snow & Daniel Hartley & Kwan Ok Lee, 2019. "The long-run effects of neighborhood change on incumbent families," CESifo Working Paper Series 7577, CESifo Group Munich.
    12. repec:bla:reesec:v:47:y:2019:i:2:p:365-398 is not listed on IDEAS
    13. Hwang, Jackelyn & Lin, Jeffrey, 2016. "What Have We Learned About the Causes of Recent Gentrification?," Working Papers 16-20, Federal Reserve Bank of Philadelphia.
    14. Baum-Snow, Nathaniel & Hartley, Daniel, 2016. "Accounting for Central Neighborhood Change, 1980-2010," Working Paper Series WP-2016-9, Federal Reserve Bank of Chicago.
    15. González-Pampillón, Nicolás & Jofre-Monseny, Jordi & Viladecans-Marsal, Elisabet, 2016. "Can Urban Renewal Policies Reverse Neighborhood Ethnic Dynamics?," CEPR Discussion Papers 11676, C.E.P.R. Discussion Papers.
    16. Segú, Mariona, 2018. "Do short-term rent platforms affect rents? Evidence from Airbnb in Barcelona," MPRA Paper 84369, University Library of Munich, Germany.
    17. repec:taf:houspd:v:27:y:2017:i:3:p:468-471 is not listed on IDEAS
    18. Behrens, Kristian & Boualam, Brahim & Martin, Julien & Mayneris, Florian, 2018. "Gentrification and pioneer businesses," CEPR Discussion Papers 13296, C.E.P.R. Discussion Papers.
    19. Alexander Bogin & William Doerner & William Larson, 2019. "Local House Price Dynamics: New Indices and Stylized Facts," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 47(2), pages 365-398, June.
    20. Acosta, Camilo & Lyngemark, Ditte Håkonsson, 2019. "The Internal Spatial Organization of Firms: Evidence from Denmark," MPRA Paper 95283, University Library of Munich, Germany.
    21. Nathaniel Baum-Snow & Daniel Hartley & Kwan Ok Lee, 2019. "The long-run effects of neighborhood change on incumbent families," CESifo Working Paper Series 7577, CESifo Group Munich.
    22. Edlund, Lena & Machado, Cecilia & Sviatschi, Maria, 2015. "Bright Minds, Big Rent: Gentrification and the Rising Returns to Skill," IZA Discussion Papers 9502, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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