Does Condominium Development Lead to Gentrification?

Working Paper No. 26170 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 docume...

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Bibliographic Details
Published in:NBER Working Paper Series 2019-08, p.26170
Format: Article
Language:English
Subjects:
Condominiums
Economic theory
Online Access:Get full text
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Summary:Working Paper No. 26170 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.
ISSN:0898-2937
DOI:10.3386/w26170