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Low-income housing in high-amenity areas: Long-run effects on residential development

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  • Paul Thorsnes

    (University of Otago, New Zealand)

  • Robert Alexander

    (University of the Sunshine Coast, Australia)

  • David Kidson

    (New Zealand Treasury, New Zealand)

Abstract

Centre-left governments from the 1940s into the 1970s developed several large areas in the urban fringe of Dunedin, New Zealand, for low-density, mostly single-family public rental housing. The public housing in these areas is now accessible, well-endowed with natural amenities, and allocated to very low-income households. Analysis of the spatial variation in natural amenities with that of household incomes and house characteristics suggests large-scale effects of the public housing developments: diversion of higher-income housing to other suburban areas and possibly maintenance of older high-quality housing in central areas. Interestingly, centre-right governments may have opened the door to market forces by encouraging tenants to purchase their public rental house. We find evidence that recent general increases in house prices have encouraged relatively high-income households to purchase ex-state rentals in these high natural amenity areas.

Suggested Citation

  • Paul Thorsnes & Robert Alexander & David Kidson, 2015. "Low-income housing in high-amenity areas: Long-run effects on residential development," Urban Studies, Urban Studies Journal Limited, vol. 52(2), pages 261-278, February.
    • Handle: RePEc:sae:urbstu:v:52:y:2015:i:2:p:261-278
    DOI: 10.1177/0042098014528999
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