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

Cristina Bratu, Oskari Harjunen, Tuukka Saarimaa*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)
120 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 languageEnglish
Article number103528
Number of pages8
JournalJOURNAL OF URBAN ECONOMICS
Volume133
Early online date7 Jan 2023
DOIs
Publication statusPublished - Jan 2023
MoE publication typeA1 Journal article-refereed

Keywords

  • Housing supply
  • Housing affordability
  • Filtering

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