Does Condominium Development Lead to Gentrification?

31 Pages Posted: 20 Aug 2019

See all articles by Leah Platt Boustan

Leah Platt Boustan

Princeton University

Robert Margo

Boston University

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

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.

Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Suggested Citation

Boustan, Leah Platt and Margo, Robert 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

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
14
Abstract Views
412
PlumX Metrics