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

Cristina Bratu, Oskari Harjunen and Tuukka Saarimaa

Journal of Urban Economics, 2023, vol. 133, issue C

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.

Keywords: Housing supply; Housing affordability; Filtering (search for similar items in EconPapers)
JEL-codes: R21 R23 R31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:133:y:2023:i:c:s0094119022001048

DOI: 10.1016/j.jue.2022.103528

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