r/liberalism • u/WifeGuy-Menelaus • 5h ago
Economics Movin’ On Up: How Costly New Homes Create Affordable Old Homes
cayimby.orgSS: Reaching back a couple years to do some theory-posting on housing economics.
California YIMBY summarizes a Swedish study that uses full-population microdata (1990-2017) to test “filtering,” the idea that new market-rate housing eventually frees up older, cheaper homes. It finds that moving chains reach households earning 60% of average income by the third move, that filtering works fastest in rental apartments, and that new supply gives every income group access to newer, larger housing. Without new construction, older homes can instead become more expensive.
The findings offer empirical support for a market-based, supply-side approach to housing affordability, a critical political and economic issue in modern urban governance.