JUE Insight: Condominium development does not lead to gentrification

Leah Boustan, Robert A. Margo, Matthew M. Miller, James Reeves, Justin Steil

Research output: Contribution to journalArticlepeer-review

Abstract

Many politicians and voters believe that condominium development hastens gentrification. Indeed, there is a strong positive correlation between the presence of condos in a neighborhood and resident socioeconomic status. We leverage the introduction of municipal regulations to study the causal effect of condo conversions on neighborhood attributes. Cities that restricted condo conversions experience a persistent decline in the condo share of the housing stock, relative to their neighboring suburbs and compared to metropolitan areas without such restrictions, even at city/suburb borders. Yet, areas with a higher condo share due to local regulations do not have residents with higher income or education levels.

Original languageAmerican English
Article number103524
JournalJournal of Urban Economics
Volume133
DOIs
StatePublished - Jan 2023
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

Keywords

  • City/suburb borders
  • Condominium
  • Gentrification
  • Municipal regulations

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