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Study Shows Low Housing Supply Leads to Gentrification
Wednesday, July 8, 2020
A study by the Urban Institute (UI)
has found a strong correlation between the home price to income ratio in an
area and its rate of gentrification. The results are published on UI's Urban
Wire blog in a post written by analysts Ellen Seidman, Jun Zhu, and Laurie
Goodman. The authors say it is important to understand what increases the pace
of gentrification, which they define as how fast high-income homebuyers move
into low-income neighborhoods. Using data from the 2018 Home
Mortgage Disclosure Act and 2018 American Community Survey data, the researchers
examined the movement of high-income borrowers into low-income areas and the
varying pace of this movement across different metropolitan statistical areas
(MSAs). The focus was on income rather than homebuyers' race or ethnicity as
that data was not available with sufficient granularity.
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