Local economic conditions and the nature of new housing supply

Christian Hilber, Jan Rouwendal and Wouter Vermeulen

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We explore the effects of local economic conditions on the type and size of newly constructed housing units in a city. Exploiting the 1984–2004 metro area samples of the American Housing Survey and US Census building permit data from 1980 to 2018, we find that positive local income shocks (i) increase a city’s share of multi-family housing in new construction and (ii) trigger the construction of smaller units. These responses are driven by migration. Our findings are consistent with a modified open monocentric city model that more realistically assumes land is available for conversion into new housing throughout the city.

Keywords: local economic conditions; open monocentric city model; land conversion; housing supply; housing type; housing consumption; land use regulation; migration and relative unit labour costs (search for similar items in EconPapers)
JEL-codes: R11 R21 R31 R52 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020-11-23
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Published in Journal of Economic Geography, 23, November, 2020. ISSN: 1468-2702

Downloads: (external link)
http://eprints.lse.ac.uk/105238/ Open access version. (application/pdf)

Related works:
Journal Article: Local economic conditions and the nature of new housing supply (2021)
Working Paper: Local Economic Conditions and the Nature of New Housing Supply (2014)
Working Paper: Local economic conditions and the nature of new housing supply (2014)
Working Paper: Local Economic Conditions and the Nature of New Housing Supply (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:105238

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