Does Condominium Development Lead to Gentrification?

44 Pages Posted: 20 Aug 2019 Last revised: 5 Jul 2023

See all articles by Leah Platt Boustan

Leah Platt Boustan

Princeton University

Robert Margo

Boston University

Matthew Miller

Audible

James Reeves

University of Michigan at Ann Arbor

Justin Steil

Massachusetts Institute of Technology (MIT) - Department of Urban Studies and Planning

Date Written: August 2019

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.

Suggested Citation

Boustan, Leah Platt and Margo, Robert and Miller, Matthew and Reeves, James and Steil, Justin, Does Condominium Development Lead to Gentrification? (August 2019). NBER Working Paper No. w26170, Available at SSRN: https://ssrn.com/abstract=3439180

Leah Platt Boustan (Contact Author)

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544-0708
United States

Robert Margo

Boston University ( email )

595 Commonwealth Avenue
Boston, MA 02215
United States

Matthew Miller

Audible ( email )

Newark, NJ
United States

James Reeves

University of Michigan at Ann Arbor ( email )

Justin Steil

Massachusetts Institute of Technology (MIT) - Department of Urban Studies and Planning ( email )

Cambridge, MA 02139-4307
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
44
Abstract Views
1,078
PlumX Metrics