Title
Does Condominium Development Lead to Gentrification
Author(s)
Leah Platt Boustan Leah Boustan (Princeton University)
Robert A. Margo Robert Margo (Boston University)
Matthew M. Miller Matthew Miller (Audible)
James M. Reeves James Reeves (University of Michigan)
Justin P. Steil Justin Steil (MIT)
Abstract
The condominium structure, which facilitates ownership of units in multi-family buildings, was only introduced to the US during the 1960s. We ask whether the subsequent development of condominiums encouraged high-income households to move to central cities. Although we document a strong positive correlation between condominium density and resident income, this association is entirely driven by endogenous development of condos in areas otherwise attractive to high-income households. When we instrument for condo density using the passage of municipal regulations limiting condo conversions, we find little association between condo development and resident income, education or race.
Creation Date
2019-08
Section URL ID
Paper Number
2019-11
URL
https://www.nber.org/system/files/working_papers/w26170/w26170.pdf
File Function
Jel
N92, R28, R31
Keyword(s)
Gentrification, Housing
Suppress
false
Series
13