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Land Price Fluctuations, Commercial-Residential Segregation, and Gentrification

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  • Xu, Hangtian

Abstract

By examining the impact of a real estate bubble on residential distribution in Tokyo and Osaka, we show that land price fluctuations influence the residential location choice within a metropolitan area. During a period of rising land prices, land developers favor commercial development over residential use in the central city, thereby increasing the daytime population while decreasing the residential population there. Thus, commercial-residential segregation is intensified. In a downturn period, however, with the shrinking demand for commercial space, homes are favored by land developers. Hence, gentrification occurs as an unintended consequence of this endogenous conversion of the land-use pattern.

Suggested Citation

  • Xu, Hangtian, 2020. "Land Price Fluctuations, Commercial-Residential Segregation, and Gentrification," MPRA Paper 98844, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:98844
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    References listed on IDEAS

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    More about this item

    Keywords

    gentrification; real estate bubble; land-use pattern; housing policy;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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