Limited Housing Supply Correlated with Higher Rates of Gentrification

For insights into the gentrification of U.S. urban areas, researchers studied high-income buyers of housing in lower-income neighborhoods. To slow gentrification, the housing supply must be boosted, say the researchers.

1 minute read

June 28, 2020, 5:00 AM PDT

By Lee Flannery @leecflannery


Seattle Victorian

Lucy Autrey Wilson / Shutterstock

Recent research conducted by Laurie Goodman, Ellen Seidman, and Jun Zhu focused on the pace of gentrification in metropolitan statistical areas by measuring the rate at which high-income homeowners buy property in low-income neighborhoods based on 2018 Home Mortgage Disclosure Act and 2018 American Community Survey data. 

"Our examination reveals that, in many MSAs, high housing costs—resulting from a lack of available housing—cause affluent buyers to look for homes in low- and moderate-income (LMI) neighborhoods. That means cities’ housing supply can determine how fast gentrification may occur. Boosting the supply of housing can slow the pace of new buyers moving into lower-income neighborhoods," say Goodman, Seidman, and Zhu. 

A geographical analysis of high-income households in 20 largest U.S. metropolitan statistical areas found that Los Angeles had the highest rate of high-income mortgage borrowing for the purchase of housing in low-income neighborhoods in 2018 at just over 60%. In Chicago, a city with more affordable housing, that rate was only 21%. "Boosting the housing supply by easing local land use, building, and zoning restrictions and encouraging alternative forms of housing like manufactured housing and accessory dwelling units would make homes more affordable and allow more buyers at all income levels to find homes, slowing the pace of gentrification," according to the researchers. 

Wednesday, June 24, 2020 in Urban Institute

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of park ranger in green jacket and khaki hat looking out at Bryce Canyon National Park red rock formations.

National Parks Layoffs Will Cause Communities to Lose Billions

Thousands of essential park workers were laid off this week, just before the busy spring break season.

February 18, 2025 - National Parks Traveler

Paved walking path next to canal in The Woodlands, Texas with office buildings in background.

Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50

A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.

February 19, 2025 - Greg Flisram

Small rural USPS post office in manufactured one-story grey building with American flag in front.

Delivering for America Plan Will Downgrade Mail Service in at Least 49.5 Percent of Zip Codes

Republican and Democrat lawmakers criticize the plan for its disproportionate negative impact on rural communities.

February 12, 2025 - Cowboy State Daily

Chicago

Test News Post 1

This is a summary

April 8 - 2TheAdvocate.com

test alt text

Test News Headline 46

Test for the image on the front page.

March 5 - Cleantech blog

Military humvee driving through gate at Fort Indiantown Gap Natl Guard training center in Pennsylvania surrounded by winter trees and dead leaves.

Balancing Bombs and Butterflies: How the National Guard Protects a Rare Species

The National Guard at Fort Indiantown Gap uses GIS technology and land management strategies to balance military training with conservation efforts, ensuring the survival of the rare eastern regal fritillary butterfly.

February 24 - Esri Blog