Local economic conditions and the nature of new housing supply

Hilber, Christian A. L. ORCID: 0000-0002-1352-495X, Rouwendal, Jan and Vermeulen, Wouter (2020) Local economic conditions and the nature of new housing supply. Journal of Economic Geography. ISSN 1468-2702

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Abstract

We explore the effects of local economic conditions on the type and size of newly constructed housing units in a city. Exploiting the 1984–2004 metro area samples of the American Housing Survey and US Census building permit data from 1980 to 2018, we find that positive local income shocks (i) increase a city’s share of multi-family housing in new construction and (ii) trigger the construction of smaller units. These responses are driven by migration. Our findings are consistent with a modified open monocentric city model that more realistically assumes land is available for conversion into new housing throughout the city.

Item Type:	Article
Official URL:	https://academic.oup.com/joeg
Additional Information:	© 2020 The Authors
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HT Communities. Classes. Races
JEL classification:	R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R31 - Housing Supply and Markets R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R52 - Land Use and Other Regulations
Date Deposited:	29 Jun 2020 14:39
Last Modified:	12 Dec 2024 02:13
URI:	http://eprints.lse.ac.uk/id/eprint/105238

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