The Push of Big City Prices and the Pull of Small Town Amenities

38 Pages Posted: 29 Feb 2024

See all articles by Jeffrey Brinkman

Jeffrey Brinkman

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Heidi Artigue

University of Pennsylvania - Business & Public Policy Department

Svyatoslav Karnasevych

Princeton University

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Abstract

As house prices rise in large, supply-constrained cities, what are the implications for other places that have room to grow? We explore how location amenities have differentially driven population and price dynamics in big cities versus other areas. We provide theory and evidence that demand for high-amenity locations has increased. High-amenity counties in large metropolitan areas have experienced price increases, while high-amenity counties in small metros and rural areas have absorbed increased demand through population growth. High-income and college-educated workers sort into large and high-amenity places, while retirees and other households detached from local productivity gravitate to high-amenity small towns.

Keywords: housing supply, amenities, population dynamics, domestic migration

Suggested Citation

Brinkman, Jeffrey and Artigue, Heidi and Karnasevych, Svyatoslav, The Push of Big City Prices and the Pull of Small Town Amenities. The Wharton School Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=4742886 or http://dx.doi.org/10.2139/ssrn.4742886

Jeffrey Brinkman (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Heidi Artigue

University of Pennsylvania - Business & Public Policy Department ( email )

3641 Locust Walk
Philadelphia, PA 19104-6372
United States

Svyatoslav Karnasevych

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544-0708
United States

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