Local economic conditions and the nature of new housing supply

Hilber, Christian A. L., 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:	24 Nov 2022 00:15
URI:	http://eprints.lse.ac.uk/id/eprint/105238

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