IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v54y2014i5p755-787.html
   My bibliography  Save this article

Why Do Renters Stay In Or Leave Certain Neighborhoods? The Role Of Neighborhood Characteristics, Housing Tenure Transitions, And Race

Author

Listed:
  • Kwan Ok Lee

Abstract

type="main"> Given significant variation in population turnover and stability across neighborhoods, this study examines why renters stay in or leave certain neighborhoods. It is the first to analyze how neighborhood characteristics influence renters’ decisions to move within the neighborhood as well as how these decisions are interrelated with their housing tenure transitions and race. Results demonstrate that homeownership rates have a significant, positive association with the probability that renters stay and/or purchase homes in the current neighborhood. Both the tenure composition of the housing stock and higher neighborhood satisfaction appear to be central in understanding this association. Results also suggest that nonblack renters are more likely to leave neighborhoods that experience growth in the percentage of the black population, while blacks are more likely to stay and purchase homes within such neighborhoods.

Suggested Citation

  • Kwan Ok Lee, 2014. "Why Do Renters Stay In Or Leave Certain Neighborhoods? The Role Of Neighborhood Characteristics, Housing Tenure Transitions, And Race," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 755-787, November.
    • Handle: RePEc:bla:jregsc:v:54:y:2014:i:5:p:755-787
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jors.12124
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: A Theory," IZA Discussion Papers 3668, Institute of Labor Economics (IZA).
    2. Ellen, Ingrid Gould & O'Regan, Katherine M., 2011. "How low income neighborhoods change: Entry, exit, and enhancement," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 89-97, March.
    3. repec:hal:wpspec:info:hdl:2441/10055 is not listed on IDEAS
    4. Hilber, Christian A.L., 2005. "Neighborhood externality risk and the homeownership status of properties," Journal of Urban Economics, Elsevier, vol. 57(2), pages 213-241, March.
    5. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(1), pages 177-218.
    6. Yannis M. Ioannides & Jeffrey E. Zabel, 2003. "Neighbourhood effects and housing demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 563-584.
    7. Yannis M. Ioannides & Giorgio Topa, 2010. "Neighborhood Effects: Accomplishments And Looking Beyond Them," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 343-362, February.
    8. William Clark, 1992. "Residential preferences and residential choices in a multiethnic context," Demography, Springer;Population Association of America (PAA), vol. 29(3), pages 451-466, August.
    9. McKinnish, Terra & Walsh, Randall & Kirk White, T., 2010. "Who gentrifies low-income neighborhoods?," Journal of Urban Economics, Elsevier, vol. 67(2), pages 180-193, March.
    10. Seko, Miki & Sumita, Kazuto, 2007. "Effects of government policies on residential mobility in Japan: Income tax deduction system and the Rental Act," Journal of Housing Economics, Elsevier, vol. 16(2), pages 167-188, June.
    11. Clapp, John M. & Nanda, Anupam & Ross, Stephen L., 2008. "Which school attributes matter? The influence of school district performance and demographic composition on property values," Journal of Urban Economics, Elsevier, vol. 63(2), pages 451-466, March.
    12. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    13. Kan, Kamhon, 2000. "Dynamic Modeling of Housing Tenure Choice," Journal of Urban Economics, Elsevier, vol. 48(1), pages 46-69, July.
    14. Kan, Kamhon, 2007. "Residential mobility and social capital," Journal of Urban Economics, Elsevier, vol. 61(3), pages 436-457, May.
    15. repec:hal:spmain:info:hdl:2441/10055 is not listed on IDEAS
    16. Barrett Lee & R. Oropesa & James Kanan, 1994. "Neighborhood Context and Residential Mobility," Demography, Springer;Population Association of America (PAA), vol. 31(2), pages 249-270, May.
    17. George Galster & Roger Andersson & Sako Musterd, 2010. "Who Is Affected by Neighbourhood Income Mix? Gender, Age, Family, Employment and Income Differences," Urban Studies, Urban Studies Journal Limited, vol. 47(14), pages 2915-2944, December.
    18. Galster, George & Andersson, Roger & Musterd, Sako & Kauppinen, Timo M., 2008. "Does neighborhood income mix affect earnings of adults? New evidence from Sweden," Journal of Urban Economics, Elsevier, vol. 63(3), pages 858-870, May.
    19. Katz, Ethan, 2001. "Bias in Conditional and Unconditional Fixed Effects Logit Estimation," Political Analysis, Cambridge University Press, vol. 9(4), pages 379-384, January.
    20. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    21. Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
    22. Deng, Yongheng & Ross, Stephen L. & Wachter, Susan M., 2003. "Racial differences in homeownership: the effect of residential location," Regional Science and Urban Economics, Elsevier, vol. 33(5), pages 517-556, September.
    23. Ingrid Gould Ellen, 2000. "Race-based Neighbourhood Projection: A Proposed Framework for Understanding New Data on Racial Integration," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1513-1533, August.
    24. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    25. Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
    26. Maarten van Ham & William A V Clark, 2009. "Neighbourhood Mobility in Context: Household Moves and Changing Neighbourhoods in the Netherlands," Environment and Planning A, , vol. 41(6), pages 1442-1459, June.
    27. Patrick Bayer & Marcus D. Casey & Fernando Ferreira & Robert McMillan, 2012. "Estimating Racial Price Differentials in the Housing Market," NBER Working Papers 18069, National Bureau of Economic Research, Inc.
    28. Peteke Feijten & Maarten van Ham, 2009. "Neighbourhood Change... Reason to Leave?," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2103-2122, September.
    29. William Greene, 2002. "The Behavior of the Fixed Effects Estimator in Nonlinear Models," Working Papers 02-05, New York University, Leonard N. Stern School of Business, Department of Economics.
    30. Dawkins, Casey J., 2005. "Racial gaps in the transition to first-time homeownership: The role of residential location," Journal of Urban Economics, Elsevier, vol. 58(3), pages 537-554, November.
    31. Donna Ginther & Robert Haveman & Barbara Wolfe, 2000. "Neighborhood Attributes as Determinants of Children's Outcomes: How Robust Are the Relationships?," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 603-642.
    32. Scott South & Kyle Crowder, 1997. "Residential mobility between cities and suburbs: race, suburbanization, and back-to-the-city moves," Demography, Springer;Population Association of America (PAA), vol. 34(4), pages 525-538, November.
    33. Margery A. Turner & Stephen Ross & George C. Galster & John Yinger, 2002. "Discrimination in Metropolitan Housing Markets: National Results from Phase 1 of the Housing Discrimination Study (HDS)," Working papers 2002-16, University of Connecticut, Department of Economics.
    34. Bruce A. Weinberg & Patricia B. Reagan & Jeffrey J. Yankow, 2004. "Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 891-924, October.
    35. Stuart A. Gabriel & Gary Painter, 2008. "Mobility, Residential Location and the American Dream: The Intrametropolitan Geography of Minority Homeownership," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(3), pages 499-531, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lance Freeman & Adele Cassola & Tiancheng Cai, 2016. "Displacement and gentrification in England and Wales: A quasi-experimental approach," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2797-2814, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Ham, Maarten & Manley, David, 2012. "Segregation, Choice Based Letting and Social Housing: How Housing Policy Can Affect the Segregation Process," IZA Discussion Papers 6372, Institute of Labor Economics (IZA).
    2. Peteke Feijten & Maarten van Ham, 2009. "Neighbourhood Change... Reason to Leave?," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2103-2122, September.
    3. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1047-1120, Elsevier.
    4. David Manley & Maarten van Ham, 2011. "Choice-based Letting, Ethnicity and Segregation in England," Urban Studies, Urban Studies Journal Limited, vol. 48(14), pages 3125-3143, November.
    5. Dujardin, Claire & Goffette-Nagot, Florence, 2010. "Neighborhood effects on unemployment?: A test à la Altonji," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 380-396, November.
    6. Lance Freeman & Adele Cassola & Tiancheng Cai, 2016. "Displacement and gentrification in England and Wales: A quasi-experimental approach," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2797-2814, October.
    7. Ingrid Gould Ellen & Keren Mertens Horn & Katherine M. O’Regan, 2013. "Why Do Higher-income Households Choose Low-income Neighbourhoods? Pioneering or Thrift?," Urban Studies, Urban Studies Journal Limited, vol. 50(12), pages 2478-2495, September.
    8. Ostermann, Kerstin & Eppelsheimer, Johann & Gläser, Nina & Haller, Peter & Oertel, Martina, 2022. "Geodata in labor market research: trends, potentials and perspectives," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-5.
    9. ÖZGÜR, Onur & BISIN, Alberto, 2011. "Dynamic Linear Economies with Social Interactions," Cahiers de recherche 04-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    10. Lina Hedman & Maarten van Ham & David Manley, 2011. "Neighbourhood Choice and Neighbourhood Reproduction," Environment and Planning A, , vol. 43(6), pages 1381-1399, June.
    11. Boschman, Sanne & Kleinhans, Reinout & van Ham, Maarten, 2014. "Ethnic Differences in Realising Desires to Leave the Neighbourhood," IZA Discussion Papers 8461, Institute of Labor Economics (IZA).
    12. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, September.
    13. Patrick Bayer & Stephen L. Ross, 2006. "Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application," Working papers 2006-13, University of Connecticut, Department of Economics, revised Jan 2009.
    14. Ad Coenen & Pieter-Paul Verhaeghe & Bart Van de Putte, 2019. "Ethnic Residential Segregation: A Family Matter? An Integration of Household Composition Characteristics into the Residential Segregation Literature," European Journal of Population, Springer;European Association for Population Studies, vol. 35(5), pages 1023-1052, December.
    15. Blume,L.E. & Durlauf,S.N., 2005. "Identifying social interactions : a review," Working papers 12, Wisconsin Madison - Social Systems.
    16. Alfred Nucci & Charles Tolbert & Troy Blanchard & Michael Irwin, 2002. "Leaving Home: Modeling the Effect of Civic and Economic Structure on Individual Migration Patterns," Working Papers 02-16, Center for Economic Studies, U.S. Census Bureau.
    17. Zenou, Yves, 2011. "Spatial versus Social Mismatch: The Strength of Weak Ties," Research Papers in Economics 2011:5, Stockholm University, Department of Economics.
    18. Katarzyna Ostasiewicz & Michal H. Tyc & Piotr Goliczewski & Piotr Magnuszewski & Andrzej Radosz & Jan Sendzimir, 2006. "Integrating economic and psychological insights in binary choice models with social interactions," Papers physics/0609170, arXiv.org.
    19. Meltzer, Rachel & Ghorbani, Pooya, 2017. "Does gentrification increase employment opportunities in low-income neighborhoods?," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 52-73.
    20. Jessie Bakens & Raymond J.G.M. Florax & Peter Mulder, 2018. "Ethnic drift and white flight: A gravity model of neighborhood formation," Journal of Regional Science, Wiley Blackwell, vol. 58(5), pages 921-948, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:54:y:2014:i:5:p:755-787. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.