Working Paper: NBER ID: w26170
Authors: Leah Platt Boustan; Robert A. Margo; Matthew M. Miller; James M. Reeves; Justin P. Steil
Abstract: Many politicians and voters believe that condominium development hastens gentrification. Indeed, there is a strong positive correlation between the presence of condos in a neighborhood and resident socio-economic status. We leverage the introduction of municipal regulations to study the causal effect of condo conversions on neighborhood attributes. Cities that restricted condo conversions experience a persistent decline in the condo share of the housing stock, relative to their neighboring suburbs and compared to metropolitan areas without such restrictions, even at city/suburb borders. Yet, areas with a higher condo share due to local regulations do not have residents with higher income or education levels.
Keywords: condominium development; gentrification; housing policy; urban economics
JEL Codes: N92; R28; R31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Decline in condo share of the housing stock (R31) | No increase in resident income or education levels (H79) |
| Municipal regulations restricting condo conversions (R52) | No increase in resident income or education levels (H79) |
| Municipal regulations restricting condo conversions (R52) | Decline in condo share of the housing stock (R31) |