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Supply Skepticism Revisited

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  • Vicki Been
  • Ingrid Gould Ellen
  • Katherine O’Regan

Abstract

Although “supply skeptics” claim that new housing supply does not slow growth in rents, our review of rigorous recent studies finds that: (a) increases in housing supply reduce rents or slow the growth in rents in the region; (b) in some circumstances, new construction also reduces rents or rent growth in the surrounding neighborhood; (c) while new supply is associated with measures of gentrification, it has not been shown to heighten displacement of lower income households; and (d) the chains of moves resulting from new supply free up both for-sale and rented dwelling units that are then occupied by households across the income spectrum, and provide higher income households with alternatives to the older units for which they might otherwise outbid lower income residents.

Suggested Citation

  • Vicki Been & Ingrid Gould Ellen & Katherine O’Regan, 2025. "Supply Skepticism Revisited," Housing Policy Debate, Taylor & Francis Journals, vol. 35(1), pages 96-113, January.
    • Handle: RePEc:taf:houspd:v:35:y:2025:i:1:p:96-113
    DOI: 10.1080/10511482.2024.2418044
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