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Trickle-Down Housing Economics

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  • Charles Nathanson

    (Northwestern University)

Abstract

This paper provides a quantitative framework for estimating the effects on house prices and household welfare of building different types of housing within a city or metropolitan area. According to our estimates, low-income households without a college degree benefit more from the construction of low-quality rather than high-quality housing, but low-quality construction makes many other households worse off. These conclusions depend on household mobility across cities, the strength of urban spillovers, the indivisibility of housing, and the differential preferences of households with and without a college degree.

Suggested Citation

  • Charles Nathanson, 2019. "Trickle-Down Housing Economics," 2019 Meeting Papers 537, Society for Economic Dynamics.
    • Handle: RePEc:red:sed019:537
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    References listed on IDEAS

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    Cited by:

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    2. Mense, Andreas, 2021. "Secondary housing supply," FAU Discussion Papers in Economics 05/2021, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    3. Ayse Imrohoroglu & Kai Zhao, 2024. "Homelessness," Opportunity and Inclusive Growth Institute Working Papers 103, Federal Reserve Bank of Minneapolis.
    4. Mast, Evan, 2023. "JUE Insight: The effect of new market-rate housing construction on the low-income housing market," Journal of Urban Economics, Elsevier, vol. 133(C).
    5. Evan Mast, 2019. "The Effect of New Market-Rate Housing Construction on the Low-Income Housing Market," Upjohn Working Papers 19-307, W.E. Upjohn Institute for Employment Research.
    6. Mense, Andreas, 2020. "The Impact of New Housing Supply on the Distribution of Rents," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224569, Verein für Socialpolitik / German Economic Association.
    7. Liu, Liyi & McManus, Doug & Yannopoulos, Elias, 2022. "Geographic and temporal variation in housing filtering rates," Regional Science and Urban Economics, Elsevier, vol. 93(C).

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