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Knocking It Down and Mixing It Up: The Impact of Public Housing Regenerations

Author

Listed:
  • Blanco, Hector

    (New York University)

  • Neri, Lorenzo

    (University of St. Andrews)

Abstract
Due to their negative effects on surrounding neighborhoods, some countries have gradually been replacing distressed public housing developments with mixed-income housing. This paper studies the effects of such policies on local housing markets in London (UK), where local authorities demolished and rebuilt several public housing developments while adding market-rate units on-site. We show that these 'regeneration' programs lead to large increases in nearby house prices and rents over a six-year period, although house prices decrease farther away. The results are consistent with strong demand effects from observed amenity improvements near the buildings and downward price pressures from increased supply dominating in the broader area. We provide suggestive evidence that regenerations involving larger socioeconomic composition changes are associated with higher price increases.

Suggested Citation

  • Blanco, Hector & Neri, Lorenzo, 2023. "Knocking It Down and Mixing It Up: The Impact of Public Housing Regenerations," IZA Discussion Papers 15855, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15855
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    References listed on IDEAS

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    1. Stefano Cellini & Francisco Nobre, 2023. "Business Improvement Districts and Housing Markets: Evidence from Neighborhoods in London," School of Economics Discussion Papers 0523, School of Economics, University of Surrey.
    2. Wang, Yixuan, 2024. "Urban Redevelopment and Gentrification: Evidence from the Atlanta BeltLine," 2024 Annual Meeting, July 28-30, New Orleans, LA 343550, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    public housing; mixed-income housing; house prices; amenities;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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