Transportation Technology and Gentrification: Evidence from the entry of Ridesharing Services

Sumit Agarwal, Shashwat Alok, Sergio Correia, Deepa Mani and Bernardo Morais

Papers from arXiv.org

Abstract: We analyze the staggered entry of rideshare services across U.S. metropolitan areas, estimating its effect on the spatial redistribution and real outcomes of residents. Ridesharing services gentrify urban areas-especially those with ex-ante lower housing values-causing housing prices to rise 9 percent, with the in-migration of rich-younger individuals more than offsetting the out-migration of incumbent residents and reduced in-migration of poorer individuals. Impact on incumbent residents is conditional on ex-ante homeownership. For homeowners, there is no displacement and a decline in delinquency rates. For non-homeowners, displacement and delinquency rates rise 11 percent and 42 percent, respectively. Our study emphasizes how the private provision of high-end transportation technologies can increase urbanization and exacerbate inequality.

Date: 2024-09
New Economics Papers: this item is included in nep-tre and nep-ure
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