JUE insight: City-wide effects of new housing supply: Evidence from moving chains

Cristina Bratu; Oskari Harjunen; Tuukka Saarimaa

doi:10.1016/j.jue.2022.103528

JUE insight: City-wide effects of new housing supply: Evidence from moving chains

Cristina Bratu, Oskari Harjunen, Tuukka Saarimaa^*

^*Corresponding author for this work

VATT Institute for Economic Research

Research output: Contribution to journal › Article › Scientific › peer-review

8 Citations (Scopus)

172 Downloads (Pure)

Abstract

We study the city-wide effects of new, centrally-located market-rate housing supply using geo-coded population-wide register data from the Helsinki Metropolitan Area. The supply of new market rate units triggers moving chains that quickly reach middle- and low-income neighborhoods and individuals. Thus, new market-rate construction loosens the housing market in middle- and low-income areas even in the short run. Market-rate supply is likely to improve affordability outside the sub-markets where new construction occurs and to benefit low-income people.

Original language	English
Article number	103528
Number of pages	8
Journal	JOURNAL OF URBAN ECONOMICS
Volume	133
Early online date	7 Jan 2023
DOIs	https://doi.org/10.1016/j.jue.2022.103528
Publication status	Published - Jan 2023
MoE publication type	A1 Journal article-refereed

Keywords

Housing supply
Housing affordability
Filtering

UN SDGs

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

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10.1016/j.jue.2022.103528Licence: CC BY

1-s2.0-S0094119022001048-mainFinal published version, 964 KBLicence: CC BY

Cite this

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abstract = "We study the city-wide effects of new, centrally-located market-rate housing supply using geo-coded population-wide register data from the Helsinki Metropolitan Area. The supply of new market rate units triggers moving chains that quickly reach middle- and low-income neighborhoods and individuals. Thus, new market-rate construction loosens the housing market in middle- and low-income areas even in the short run. Market-rate supply is likely to improve affordability outside the sub-markets where new construction occurs and to benefit low-income people.",

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AB - We study the city-wide effects of new, centrally-located market-rate housing supply using geo-coded population-wide register data from the Helsinki Metropolitan Area. The supply of new market rate units triggers moving chains that quickly reach middle- and low-income neighborhoods and individuals. Thus, new market-rate construction loosens the housing market in middle- and low-income areas even in the short run. Market-rate supply is likely to improve affordability outside the sub-markets where new construction occurs and to benefit low-income people.

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KW - Housing affordability

KW - Filtering

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JUE insight: City-wide effects of new housing supply: Evidence from moving chains

Abstract

Keywords

UN SDGs

Access to Document

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