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Does new housing for the rich benefit the poor? On trickle-down effects of new homes

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  • Kindström, Gabriella
  • Liang, Che-Yuan

Abstract

We use microdata on the Swedish population and housing stock (1990–2017) to investigate how building new homes affects the housing distribution across income groups. While primarily rich people move into new homes, poor people are well represented among in-movers to vacated homes. As homes age and deteriorate, they filter down to poor people; it takes approximately 30 years for new homes to reach an even income distribution. We also find that in municipalities with higher construction rates, every income group gets better access to newer housing and housing space. Overall, we conclude that new homes, even those initially primarily inhabited by rich people, lead to substantial trickle-down effects that also benefit the poor.

Suggested Citation

  • Kindström, Gabriella & Liang, Che-Yuan, 2024. "Does new housing for the rich benefit the poor? On trickle-down effects of new homes," SocArXiv u7hjv, Center for Open Science.
    • Handle: RePEc:osf:socarx:u7hjv
    DOI: 10.31219/osf.io/u7hjv
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    1. Brunåker, Fabian & Dahlberg, Matz & Kindström, Gabriella & Liang, Che-Yuan, 2024. "Revitalizing poor neighborhoods: Gentrification and individual mobility effects of new large-scale housing construction," SocArXiv g5rzn, Center for Open Science.

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