Local economic conditions and the nature of new housing supply

C.A.L. Hilber; J. Rouwendal; W. Vermeulen

doi:10.1093/jeg/lbaa015

Local economic conditions and the nature of new housing supply

C.A.L. Hilber, J. Rouwendal, W. Vermeulen

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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.

Original language	English
Pages (from-to)	339-366
Number of pages	28
Journal	Journal of Economic Geography
Volume	21
Issue number	3
Early online date	23 Nov 2020
DOIs	https://doi.org/10.1093/jeg/lbaa015
Publication status	Published - May 2021

Funding

Funding from the Suntory and Toyota International Centre for Economics and Related Disciplines (STICERD), the Investment Property Forum Education Trust (IPFET) and HABIFORM program on innovative land use are gratefully acknoweldged.

Funders	Funder number
Suntory and Toyota International Centre for Economics and Related Disciplines
Economic and Social Research Council	ES/T014431/1

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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Local economic conditions and the nature of new housing supplyFinal published version, 490 KBLicence: Article 25fa Dutch Copyright Act

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Local economic conditions and the nature of new housing supply

Abstract

Funding

UN SDGs

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