Ep 05: Market-Rate Development and Neighborhood Rents with Evan Mast

We’ve known for many years that building more homes helps keep prices in check at the regional or metro area level, but what about the house down the street? When a new apartment building goes up nearby, does the “supply effect” of more homes lower rents, or does the “demand effect” send a signal to nearby property owners and potential residents that causes rents to go up? Evan Mast of the Upjohn Institute joins Mike and Shane to discuss two recent papers he’s worked on that help shed light on this important and controversial question.Show notes:Asquith, B., Mast, E., & Reed, D. (2019). Supply shock versus demand shock: The local effects of new housing in low-income areas. Upjohn Institute WP, 19-316.Mast, E. (2019). The effect of new market-rate housing construction on the low-income housing market. Upjohn Institute WP, 19-307.Li, X. (2019). Do new housing units in your backyard raise your rents. Working paper.Guerrieri, V., Hartley, D., & Hurst, E. (2013). Endogenous gentrification and housing price dynamics. Journal of Public Economics, 100, 45-60.Phillips, S., Manville, M., & Lens, M. (2021). Research Roundup: The Effect of Market-Rate Development on Neighborhood Rents. UCLA Lewis Center for Regional Policy Studies.Diamond, R., McQuade, T., & Qian, F. (2019). The effects of rent control expansion on tenants, landlords, and inequality: Evidence from San Francisco. American Economic Review, 109(9), 3365-94.Liu, L., McManus, D. A., & Yannopoulos, E. (2020). Geographic and Temporal Variation in Housing Filtering Rates. Available at SSRN.“Opportunities and Obstacles for Rental Housing Registries,” Jan. 20 Lewis Center event with Assembly member Buffy Wicks and Catherine Bracy. https://youtu.be/vaDTWHxk-I8