No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Filtering and Housing Standards: A Conceptual Analysis
... As a result, they eventually require maintenance and additional expenditures to maintain their quality standards and expected market values. Many studies have examined the implications of these unique housing characteristics on housing markets and prices, quality standards, depreciation, and maintenance, as well as related government housing policies (Arnott et al., 1983;Chinloy, 1980;Lowry, 1960;Myers, 1984;Sweeney, 1974). In the study of housing economics (DiPasquale and Wheaton, 1994;Kenny, 1999;Wilhelmsson, 2008a), the interplay between housing prices and renovation costs has garnered considerable interest (Gyourko and Saiz, 2004;Mamre and Sommervoll, 2022;Mayer, 1981;Mendelsohn, 1977;Munneke and Womack, 2015;Potepan, 1989;Schuetz, 2020;Wilhelmsson, 2008b). ...
... Renovation and maintenance expenses are often necessary to counteract the effects of depreciation on the value of housing services provided by residents (Knight and Sirmans, 1996). Lowry (1960) emphasises that quality declines with age, leading to various forms of depreciation. Adequate maintenance is crucial to address issues related to housing depreciation, such as wear and tear due to physical deterioration and technological obsolescence (Lowry, 1960;Wilhelmsson, 2008b). ...
... Lowry (1960) emphasises that quality declines with age, leading to various forms of depreciation. Adequate maintenance is crucial to address issues related to housing depreciation, such as wear and tear due to physical deterioration and technological obsolescence (Lowry, 1960;Wilhelmsson, 2008b). While achieving a zero-depreciation rate is impossible due to external and certain functional obsolescence, owners can reduce physical deterioration through appropriate maintenance (Wilhelmsson, 2008b). ...
Purpose
The primary aim of this research is to examine the effects of the Renovation, Conversion, and Extension (ROT) tax deduction for renovations on the scope and quality of renovations and its subsequent impact on house prices across various Swedish municipalities.
Design/methodology/approach
This study utilises a two-way fixed effect instrument variable (IV) spatial Manski approach, analysing balanced panel data from 2004 to 2020 at the municipal level (290 municipalities) in Sweden. The methodology is designed to assess the impact of the ROT subsidy on the housing market.
Findings
The study reveals that the ROT subsidy has significantly influenced house prices, with noticeable variations between municipalities. These differences are attributed to the varying amounts of tax reductions for renovations and the extent to which property owners utilise these subsidies.
Research limitations/implications
The research is limited to the context of Sweden and may not be generalisable to other countries with different housing and subsidy policies. The findings are crucial for understanding the specific impacts of government subsidies on the housing market within this context.
Practical implications
For policymakers and stakeholders in the housing market, this study highlights the tangible effects of renovation subsidies on property values. It provides insights into how such financial incentives can shape the housing market dynamics.
Social implications
The research underscores the role of government policies in potentially influencing equitable access to housing. It suggests that subsidies like ROT can have broader social implications, including the distribution of housing benefits among different income groups and regions.
Originality/value
This study contributes original insights into the field of applied real estate economics by quantitatively analysing the impact of a specific government subsidy on the housing market. It offers a unique perspective on how fiscal policies can affect property values and renovation activities at the municipal level in Sweden.
... This situation implies that residential migration would be facilitated by a greater presence of services in the built environment (Galster, 1987). This relationship between mobility and socioeconomic status can be understood in two ways: from the processes of gentrification, understanding how low-income areas of the city become occupied by higher-income residents, and the processes of filtering, whereby higher-income areas become inhabited by lower-income residents (Lowry, 1960). ...
... From the analysis of the internal patterns of residential mobility of the HIC, it is possible to identify a double process of residential mobility, where 'achievers' arrive to the pericentral municipalities, and 'inheritors' move from these territories to the municipalities located further east. This gives us evidence of a certain process of population replacement and 'filtering' (Lowry, 1960) from the west to the east of the HIC. ...
... The second consists of a process of internal mobility within the cone, where the 'inheritors' that are born in the HIC move from its pericentral area to the municipalities located at its eastern end, mainly to houses and gated communities. This phenomenon gives us indications of a process of replacement or 'filtration' (Lowry, 1960), where the pericentral zones of the HIC are occupied by residents who have experienced processes of social mobility and were born in other territories. At the same time, the original inhabitants vacate these pericentral zones to locate in municipalities located further east of the HIC, expanding its urban limits. ...
The High-Income Cone (HIC) is characteristic of the urban structure of Latin-American metropolises, consisting of a delimited area of the city where inhabitants of high socioeconomic status are located, consolidating the patterns of social segregation and inequality that are typical of those societies. Despite the urban transformations experienced by the metropolises of the continent in the last decades, little study has been done to understand the internal dynamics of HICs, which are usually considered a socially homogeneous space. This article delves into the internal complexities of the HIC of Greater Santiago, investigating its residential mobility processes and distinguishing between traditional and recent inhabitants, or ‘inheritors’ and ‘achievers’. Our results indicate the presence of parallel processes of residential mobility, where ‘achievers’ are concentrated in the apartments located in the pericentral zone of the HIC, while ‘inheritors’ move to the houses located in the extreme east. This process of permeability and filtering is conditioned by the recent trends of neoliberal urban densification and expansion, where the construction of more accessible buildings allows the arrival of certain people to the pericentral areas of the HIC, while the more exclusive houses and gated-communities far east are more accessible for inheritors.
... As a result, an increase in the desirability of a housing unit or its location, for example due to the construction of a new transportation facility, can counter the effects of supply increases and lead to cost increases, even for older and lower-quality housing units. In such cases, older housing units might filter up to higher-income households even though the quality of the unit did not necessarily change (Fisher & Winnjck, 1951;Lowry, 1960). ...
... While these explanations of filtering are based on exogenous factors like unit age, rate of deterioration, and desirability, endogenous factors like human behavior can also affect the process (Lowry, 1960). According to this understanding, the owners and dwellers of a housing unit can react to the market evaluation of a unit by adopting behavior that either accelerates or delays the desirability of a unit. ...
... These last points have led Fisher and Winnjck (1951) and Lowry (1960) to argue that filtering should be used to describe the relative position of a housing unit, not a household, within the broader housing market. According to this definition, a unit is considered to have filtered down if its rent or price has decreased, not if it is occupied by a lower-income household. ...
Housing affordability is a major problem for many Americans. The increase in residential rents in the past few decades, alongside stagnant and even lower incomes, is forcing households to spend a larger share of their income on housing. The high costs of housing relative to income mean that some households cannot afford non-housing goods and services like food, healthcare, and education. Within the affordability debate, lowering transportation costs by using transit is often viewed as a potential solution to affordability problems. While housing might be expensive, if transportation costs are low, the overall costs of living in a specific neighborhood might still be affordable. Hence, housing and transportation advocates call for improving public transport options that allow households to access destinations without needing a private vehicle. In this dissertation, I examine housing and transportation costs and affordability in twenty-seven U.S. metropolitan areas with intra-urban rail systems. The objective of the study is to understand whether transit-rich neighborhoods, especially those served by rail, are affordable, with an emphasis on lower-income households. To this end, the dissertation adopts a multilevel approach to examining housing and transportation costs and affordability cross-sectionally and over time. Adopting a multilevel approach allows examining how neighborhood- and metropolitan-level factors interact with one another and affect housing and transportation costs and affordability. Neighborhoods (i.e., block groups and census tracts) are classified based on their proximity to rail and their built environments to examine how costs vary between different types of neighborhoods. Finally, affordability is calculated based on metropolitan-wide income levels to assess whether housing and transportation costs are affordable to households at different income levels. The results indicate that the majority of neighborhoods in the sampled metropolitan areas are affordable to median and moderate-income households. Moreover, transit-rich neighborhoods are found to be more affordable than auto-oriented neighborhoods, mainly thanks to lower transportation costs. Still, only small share of neighborhoods is affordable to households earning 50% or less of area median income. Even in transit-rich neighborhoods, the lower transportation costs typically do not translate into more affordable locations for very low-income households. This is because many households still rely on the private vehicle even in the most transit-rich neighborhoods. Housing in transit-oriented development is expensive, in part, due to the high levels of transit job accessibility these neighborhoods offer. However, housing costs in these neighborhoods are also high because of low long-run elasticities of housing supply. Despite an increase in the demand for compact walkable neighborhoods in recent decades, land-use regulations and local opposition direct denser development to rail-station areas. As a result, a higher supply of housing in transit-oriented development is associated with higher housing costs regionwide due to induced demand for these neighborhoods. At the same time, increasing the supply of housing in alternative pedestrian-friendly and transit-rich neighborhoods has a moderating effect on housing costs in transit-oriented development as it allows separating the demand for walkable urban form from the demand for transit accessibility. Hence, rather than focusing on developing more housing only in transit-oriented development, efforts should focus on expanding the housing options in a diversity of neighborhood types both near and away from rail stations.
... The filtering theory thus offers the possibility that the housing needs of lower-income households can be met, indirectly, by the provision of new housing for better-off households by the private sector rather than directly through subsidized or public housing. Lowry (1970) summarized the policy implications of filtering as a general improvement of housing standards that can be achieved within a framework of the private housing market by a process described as 'filtering'. Direct government programs which provide subsidized new housing for lower or middle-income families interfere with an orderly market process that would otherwise provide second-hand but socially adequate housing for the same families at prices within their means. ...
... There are too few high-priced and high-quality houses to meet the needs of lower-income households (Fisher and Ratcliff, 1936;Smith, 1964). Lowry (1970) pointed out, falling rental returns are likely to lead to under maintenance by landlords and, ultimately, abandonment by landlord and tenant alike. The problem is most relevant where the proportion of privately rented property is high -particularly in older urban areas with a large proportion of houses at risk. ...
... The initial approach was expanded in subsequent publications, and filtering processes were discussed in the literature. Lowry (1960) studied filtering in relation to public policy in an attempt to "scrutinize the model of housing market behavior presented by the partisans of filtering". Margolis (1982) presented "estimates of depreciation rates for housing which are appropriate to consideration of the filtering hypothesis". ...
... The partitioning of the urban housing market into market segments that are segmented by quality was a central issue in 3 Young buyers who are hoping to start a family tend to purchase larger and higher-standard apartments, whereas older buyers tend to buy smaller and cheaper apartments. 4 The oldest scientific article on filtering that was accessed by the authors dates back to 1960 (Lowry, 1960). Lowry cites four previous studies on filtering; however, we were unable to access those articles (Radcliff, 1949;Fisher, Winnjck, 1951;Rodwin, 1951;Grebler, 1952). ...
The evolution of prices on the Warsaw (Poland) housing market was analyzed to identify the main drivers of market development. Newly developed housing and the existing housing stock were analyzed separatelywith a division into small, medium and large apartments (first stage of research). The macro-districts of the city of Warsaw were taken into account in the analysis (second stage of research). Complete data regarding individual transactions were not available; therefore, the analysis relied on changes in house prices in macro-districts between 2010Q1 and 2016Q4. In general, Poland still has a housing shortage, which is also visible in the capital city. Granger causality tests were performed to provide evidence for the filtering process and the ripple effect in selected market segment pairs. An increase in the prices of small apartments on the secondary market led to an increase in the prices of newly built medium-sized apartments. A similar correlation was noted between the prices of medium-sized apartments on the secondary market and the prices of newly built large apartments. The increase in housing prices in the city center tended to spill over to selected macro-districts. Our findings were confirmed by the vector autoregressive (VAR) model.
... One of the most famous examples of gentrified neighborhoods is Notting Hill in West London, UK [2]. Early proponents such as Lowry [3], Smith [4], and Altschuler [5] argued that gentrification will benefit the original residents through trickledown economics. However, scholars like Glass [6], Abrahamson [7], and Slater [8][9][10] found that gentrification is detrimental to the original communities, since the reconstruction required these communities to be displaced and dispersed. ...
Cities are increasingly recognized as complex systems, emerging through conditional and history-dependent urban processes. To understand a complex urban phenomenon to the point where we can act on it, we need a quantitative yet holistic approach. In this paper, we report on a preliminary study on the gentrification of H Street NE in Washington, DC, USA. Popular accounts claim that this started in 2016, with wealthier new residents displacing poorer old residents. When we examined a cross-section of demographic, income, housing, commercial activity, and social activity data, we found a classic gentrification sweeping over H Street NE starting around 2000. These slow changes drove rapid changes in renter proportions and rents in one of the five census tracts making up the community, a wave of church closures, and a sudden doubling of restaurants and nonclassified businesses. Our results suggest that the gentrification of H Street NE is a small messy piece in a broader picture of urban transformation in Washington, DC.
... Slater [11] divides gentrification research into two main strands: production-side and consumption-side theories. Both reject the view that gentrification is a benign return to urban centers [12,13], with production-side theories linking it to economic factors such as the rent gap [14,15]and housing quality decline [16]. Conversely, consumption-side theories emphasise the growing appeal of city centers [17], where proximity to urban amenities fuels demand. ...
The phenomenon of gentrification of an urban area is characterized by the displacement of lower-income residents due to rising living costs and an influx of wealthier individuals. This study presents an agent-based model that simulates urban gentrification through the relocation of three income groups -- low, middle, and high -- driven by living costs. The model incorporates economic and sociological theories to generate realistic neighborhood transition patterns. We introduce a temporal network-based measure to track the outflow of low-income residents and the inflow of middle- and high-income residents over time. Our experiments reveal that high-income residents trigger gentrification and that our network-based measure consistently detects gentrification patterns earlier than traditional count-based methods, potentially serving as an early detection tool in real-world scenarios. Moreover, the analysis also highlights how city density promotes gentrification. This framework offers valuable insights for understanding gentrification dynamics and informing urban planning and policy decisions.
... Degradacja i rewitalizacja przestrzeni miejskiej między ekonomią rynku nieruchomości, a polityką Degradacja przestrzeni i zabudowy miejskiej jest -zgodnie z teorią rynku nieruchomości -wyrazem niedostatku środków koniecznych dla pokrycia kosztów utrzymania (sprawności) oraz kosztów modernizacji (dostosowania do aktualnych wymagań i standardów), jakości przestrzeni i zabudowy miejskiej (dla niżej opisanych procesów por.: Louis Fisher, Ernest M. Winnick, (1951), Elisabeth Lichtenberger (1990), Ira S. Lowry (1960), Andrej Holm (2006)). ...
... The balance between depreciation and maintenance depends on how depreciation appears over the property's life cycle and the maintenance cost (Dildine & Massey, 1974). further developed Lowry's theoretical model (Lowry, 1960) on the property owner's decision to renovate their property. The model is based on an investment decision in which the expected benefit (the net return) is maximised. ...
The value of a property tends to decrease over time as it ages,resulting in a reduced ability to generate the same value. Propertydepreciation is a multifaceted concept that encompasses bothtechnical and economic aspects. The purpose of the study is toevaluate whether additional information on the quality of oldersingle-family homes affected the depreciation factor. We collectedspecific data from property owners on the frequency of variousmaintenance and reinvestment operations, both internal and exter-nal, such as the roof, foundation, heating, and kitchen. Our data-base consists of nearly 10,000 owner-occupied single-family housesin Sweden sold between the beginning of 2021 and 2022 that areover 30 years old. Our results show, as expected, that the deprecia-tion per year for older properties is lower. However, for olderproperties that have been renovated, the age-related price effectis an appreciation. This is especially true for older properties builtbefore 1940. Renovating and maintaining older properties canmitigate the age-related decline in prices and should be takeninto account when valuing properties, especially properties olderthan 80 years.
... However, with the passage of time, landlords may not be able to recover the costs of maintenance and repair from rental income. Meanwhile, filtering happens, which is defined as a change in the real value, i.e. price in constant dollar of an existing dwelling unit (Lowry, 1960). Filtering down refers to the change in occupancy as the housing that is occupied by one income group becomes available to the next lower income group because of the decline in market price (Ratcliff, 1949). ...
This study examines informal housing supply factors through rent gap analysis. Gentrification brings displacement implication, especially for households in the lower end of the housing market. Serious affordability problem excludes households from formal housing sector. Informal housing often emerges when formal market cannot fully respond to affordable housing demand. Incentive for property owners to supply lower-cost units by informal means e.g. apartment subdivision for higher rental return is created with the rent gap between informality and formality. It is largely attributed to quasi-rent which is temporary in nature. Meanwhile, renters' housing needs are met by forgoing living space and housing facilities. Informal housing supply leads to displacement of original incumbents and inflow of lower-income class. With assistance of local non-governmental organizations, this study examines informal housing supply determinant based on a case study of sub-divided units (SDUs), which are Hong Kong's key informal housing component. Rent gap size, disinvestment conditions and accessibility of the apartments are found to be key SDU supply factors. The results could be generalized to other cities with serious housing unaffordability and informal housing arrangements. Implications are also drawn from the results for future affordable housing supply and social welfare policy implementation.
... Dieses gerichtliche Urteil widersprach wissenschaftlichen Befunden: Denn die Studien kommen meist zu dem Schluss, dass geförderter Mietwohnungsbau die beste Option sei, um die Wohnraumversorgung aller zu verbessern(Boddy und Gray 1979). Von Seiten der Wissenschaft wurde nicht nur auf empirische Evidenzen, sondern auch auf theoretische Widersprüche(Lowry 1960;Smith 1979) hingewiesen, die das Sickerargument porös werden lassen. Dennoch beziehen sich Politiker*innen bis heute positiv darauf, so zunächst Bundesbauminister Paul Lücke (CDU)(1957)(1958)(1959)(1960)(1961)(1962)(1963)(1964)(1965), der damit die öffentliche Förderung von Eigenheimen propagierte 9 . ...
Um die heutige Situation neoliberaler Wohnungspolitik mit ihren Möglichkeiten und Grenzen hinsichtlich einer bezahlbaren Wohnraumversorgung für alle genauer diagnostizieren zu können, analysiert dieses Arbeitspapier die Geschichte der bundesdeutschen Wohnungspolitik. Vor dem Hintergrund der aktuellen Wohnungskrise erfolgt ein historischer Zugang zur Wohnungsfrage unter konzeptioneller Bezugnahme auf Wohnen als Grundbedürfnis und Bestandteil der „Fundamentalökonomie“. Die Wohnraumversorgung wir dabei als zentraler Kontenpunkt in der politischen Ökonomie begriffen. Zudem werden Verbindungen zu aktuellen Debatten aus der deutschsprachigen Wohnungsforschung hergestellt. Räumlich fokussiert die Analyse Entwicklungen in den Groß- und Universitätsstädten. Denn diese stellen auch den primären Bezugsrahmen für das BMBF-geförderte Forschungsprojekt „Gemeinwohl-relevante öffentliche Güter. Die politische Organisation von Infrastrukturaufgaben im Gewährleistungsstaat“ und das befindliche Handlungsfeld „bezahlbar Wohnen“ dar, in dessen Rahmen das Arbeitspapier entstand.
... As tenants moved into these units their old apartments would become available for oc· cupancy by others. This is called "filtering." (See Lowry, 1960.) It is not clear that enough uncontrolled units would be built to make a difference; nor is it clear that lower in· come tenants would be able to move into vacated apart· L ents without paying substantially more rent. ...
This paper offers three explanations for the pervasiveness of rent controls: (1) people do not act rationally when they support rent control legislation, (2) a minority of individuals, who feel they will benefit from rent controls, have captured the political process, and (3) the standard economic analysis is flawed.
... Empirical analyses based on filtering have generally focused on a specific indicator of change, for example, the drop-in house prices [56], the turnover of houses detectable in the vacancy chains or the mobility of individual households affecting assets [57]. However, whatever the focal point, a rigorous analysis of the filtering necessarily implies a subdivision of the real estate market into several distinct segments among which existing households and houses move in interaction with new buildings. ...
Urban/social fragility is the main focus of most studies on civil economy involving the commitment of politics in the prospect of integrating and somehow guiding an ordered development of and ordered communities. The contemporary city is strongly influenced by the incommunicability between the social system and environment, the latter more and more, including urban and societal components. This study tries to outline a comparative social-urban profile of Picanello, a popular central neighborhood of Catania, in Sicily, Italy, characterized by the combination of different urban and social life-quality levels, thus expressing a heterogeneous vulnerability/resilience profile. The analysis is placed in the urban planning context and aims to: (1) Denotative a pattern that considers the different fragility/resilience descriptive indices; and (2) connotative a pattern of the human and urban dimensions of the social capital asset. This analysis was performed by implementing a multidimensional pattern allowing us to place the neighborhood in a ranking of the neighborhoods of Catania, thus highlighting strength and weakness under different respects. Furthermore, the monetary measurements of this vulnerability/resilience profile, was carried by means of the structured observation of the real estate market. Fuzzy k-medoids cluster analyses have been comparatively performed—showing and mapping the relationships between urban value density and real estate market prices tensions.
... From the widely held concept of filtering in housing markets, lowincome households are more likely to rent units of lower quality in less accessible areas because these units become the only affordable option (Baer & Williamson, 1988;Galster & Rothenberg, 1991;Ohls, 1975). As a result, low-income households will typically inhabit the poorest quality housing units, which are often in the least efficient buildings (Lowry, 1960;Reina & Kontokosta, 2017). This means that even with behavioral adjustments to reduce energy consumption, lowincome households typically face higher utility costs to achieve a basic comfort level in their homes. ...
Problem, research strategy, and findings: Of the three primary components of housing affordability measures—rent, transportation, and utilities—utility costs are the least understood yet are the one area where the cost burden can be reduced without household relocation. Existing data sources to estimate energy costs are limited to surveys with small samples and low spatial and temporal resolution, such as the American Housing Survey and the Residential Energy Consumption Survey. In this study, we present a new method for small-area estimates of household energy cost burdens (ECBs) that leverages actual building energy use data for approximately 13,000 multifamily properties across five U.S. cities and links energy costs to savings opportunities by analyzing 3,000 energy audit reports. We examine differentials in cost burdens across household demographic and socioeconomic characteristics and analyze spatial, regional, and building-level variations in energy use and expenditures. Our results show the average low-income household has an ECB of 7%, whereas higher income households have an average burden of 2%. Notably, even within defined income bands, minority households experience higher ECBs than non-Hispanic White households. For lower income households, low-cost energy improvements could reduce energy costs by as much as $1,500 per year.
Takeaway for practice: In this study we attempt to shift the focus of energy efficiency investments to their impact on household cost burdens and overall housing affordability. Our analysis explores new and unique data generated from measurement-driven urban energy policies and shows low-income households disproportionately bear the burden of poor-quality and energy-inefficient housing. Cities can use these new data resources and methods to develop equity-based energy policies that treat energy efficiency and climate mitigation as issues of environmental justice and that apply data-driven, targeted policies to improve quality of life for the most vulnerable urban residents.
... For municipal governments, however, gentrification increases property values and, ultimately, expected property tax revenues (DeGiovanni, 1984). Some authors have hypothesized that the process of gentrification could trickle down to the poorest residents of the neighborhoods (Lowry, 1960;Smith, 1964). There is, however, poor evidence that such positive gentrification would increase social mix, social capital, and social cohesion (Lees, 2008). ...
... Yet such cities do not exist, and the constant state of disequilibrium in the housing market fluctuates based on economic stability and housing vacancy. The relationship between economic stability and housing vacancy revolves around the underlying connections between homeownership, neighborhood stability, public policy, and urban economics (Lowry 1960). These relationships, while existing before World War II, became far more obvious during the post-World War II construction boom. ...
Housing vacancies have become a major issue in depopulating, or shrinking, cities. All urban areas, however, are subject to some degree of vacant housing. A small percentage is necessary to allow mobility and sufficient space for growth, and is an indicator of healthy urbanization. Conversely, widespread housing vacancies may indicate structural crisis due to property abandonment. Land area and population changes, shifts in employment, demographic trends, development intensity, and economic conditions are primary drivers of housing vacancies. The degree to which these interrelated factors contribute can fluctuate by city. This paper explores relationships between factors contributing to housing vacancies over time to identify changes in underlying factors. The research examines U.S. cities of over 100,000 population over the period of 1960–2010, conducting multivariate regression analyses in 10-year periods and performing longitudinal panel analyses. The regressions examine changes in urban housing vacancy factors over time while the panel models assess which factors have remained consistent. The panel model results indicate that population change, percent nonwhite populations, unemployment and density are consistent, significant predictors of housing vacancies, The incremental regression models suggest that unemployment and regional location have also been strong indicators of housing vacancies. These results, while somewhat exploratory, provide insight into long-term data that cities should track over time to determine the optimal policy approaches to offset housing vacancies.
... several operational definitions of the concept are evident in the literature. Alternative definitions of filtering have focused on specific aspects of the filtering process, including changes in occupancy (Ratcliff 1949;Lansing et al. 1969;White 1971), changes in unit value (lowry 1960;Fisher and Winnick 1951;Grigsby 1963;Olsen 1969), changes in the desirability of aging stock (Muth 1973;Grebler 1953), or price declines for constant-quality units (Weicher and Thibodeau 1988;Sweeney 1974;Ohls 1975;Braid 1984). Each reflects a specific dimension of filtering dynamics. ...
... Processen slutade antingen med att bostäder som låg i närheten av innerstaden togs över av verksamheter i innerstaden eller av hushåll med lägre inkomster som var nyinvandrade i staden, alternativt revs (Park, 1925;Hoyt, 1939 Modellerna kom till stor del att definiera hur man såg på och förklara urbana flyttrörelser och bosättningsmönster under 1900-talet (se t.ex. Ratcliff, 1949;Lowry, 1960;Baer & Williamson, 1988). Filtrering kom därför också att användas som en bostadspolitisk strategi. ...
... In this context, the demand in the commercial office market is less for more office development than for new office development. For commercial office buildings, new buildings include floor plans that offer light, air, and open space and are located in areas that offer amenities appealing to the millennial workforce.According to the popular theory of filtering(Lowry 1960), new building stock should allow older stock to "filter down" for use by less affluent tenants. With the average age of Midtown's commercial building stock at 57 years old(Li 2010), the competition from Hudson Yards should result in a decrease in Midtown's market rents. ...
... Whereas different types of housing may provide varying crime opportunities, we argue that housing age can also have important consequences for neighborhood crime. This insight is based on filtering theory, which was developed in housing economics (Hoyt 1933;Lowry 1960) based on the key insight that as housing ages it deteriorates and becomes less desirable (for a nice review, see Baer and Williamson 1988). Thus, as housing ages, the value slowly declines relatively (Coulson and Bond 1990;Smith, Rosen, and Fallis 1988). ...
This study introduces filtering theory from housing economics to criminology and measures the age of housing as a proxy for deterioration and physical disorder. Using data for Los Angeles County in 2009 to 2011, negative binomial regression models are estimated and find that street segments with older housing have higher levels of all six crime types tested. Street segments with more housing age diversity have higher levels of all crime types, whereas housing age diversity in the surrounding ½-mile area is associated with lower levels of crime. Street segments with detached single-family units generally had less crime compared with other types of housing. Street segments with large apartment complexes (five or more units) generally have more crime than those with small apartment complexes and duplexes.
... For the municipal government, however, gentrification increases the property values, and ultimately, the expected property tax revenues (DeGiovanni, 1984). Some authors have hypothesized that the process of gentrification could trickle down to the poorest residents of the neighborhoods (Lowry 1960;Smith 1964). There is, however, poor evidence of such positive gentrification that would increase social mix, social capital, and social cohesion (Lees 2008). ...
Innovation districts are emerging as place-based, knowledge-based urban development strategies in diverse cities around the world. They have, however, been criticized for being non-participative top-down initiatives that encourage gentrification and income, social, and racial polarization. In 2015, Mayor Berke launched Chattanooga’s Innovation District in the city’s downtown to accelerate the transformation of Chattanooga into a knowledge city. This paper investigates the programs that are being implemented in order to mitigate the negative externalities that such a strategy can generate. Using Chattanooga as an exploratory case, the authors argue that gentrification in innovation districts can increase knowledge spillovers.
... Filtering explains the neighborhood change process according to the residential structures' physical conditions (e.g., Bier 2001;Grigsby et al. 1987;Lowry 1960;Muth 1972). In filtering, the quality of dwelling units plays a significant role in any neighborhood indicators change. ...
This article seeks to understand neighborhood change induced by natural hazards in the context of neighborhood change dynamics. Based on the underlying systematic mechanism of neighborhood change, it suggests conceptual and methodological models in which a natural hazard, as a “transient, exogenous shock,” affects neighborhood change trends over time. The models also consider that natural hazards alter neighborhoods differentially according to their basic characteristics. After a natural hazard, two factors exogenous to neighborhoods, physical damages and rehabilitation process, are important to understand the rebuilding process and the shift in the neighborhood change pattern.
The energy burden within low-income households presents a significant societal challenge that necessitates a thorough understanding for developing effective and sustainable policies. However, very few studies analyze and model energy-related factors among low-income individuals. Thus, this study critically investigates the relationship between various buildings' characteristics and four distinct energy-related outputs (i.e., energy burden, annual energy cost, annual energy cost per square footage, and annual energy cost per square footage per person) for both low-income and non-low-income households across the United States, using six machine learning algorithms. Leveraging the American Housing Survey dataset, this study identifies factors impacting energy burden and consumption and highlights variables contributing to the energy burden disparity among these two household groups, compromising census division, number of floors within the unit, household income, federal poverty level threshold, and number of rooms in the unit for non-low-income households, and the number of persons aged 18 and over, census division, household income, number of rooms in a unit, and unit size in square feet for low-income households. Additionally, it introduces 48 models to predict energy-related outputs and evaluates the accuracy of models. To evaluate the accuracy of these models, two key metrics are employed: R2 (coefficient of determination) and RMSE (root mean square error), which provide insights into the models’ predictive accuracy and error rates, respectively. The study reveals that Gradient Boosting Regression and XGBoost predict outcomes for low-income and non-low-income households with higher accuracy and with fewer inputs, making them cost-effective and efficient models. The findings enhance our understanding of energy equity issues and equip policymakers with actionable insights to alleviate energy burden disparities and promote energy equity across diverse socioeconomic landscapes.
For more than 40 years, Neil Smith's rent gap theory of gentrification has been one of the most influential concepts in critical urban research. In recent years, however, the rent gap has been challenged as an economically deterministic tool suitable only for the study of inner city land parcels in certain types of deindustrializing cities of the Global North. But what if the rent gap was never really about economics, but instead about moral outrage? And what happens when moral and ethical questions about access to urban space are extended across multiple human generations? This article develops the concept of the moral rent gap: juxtapositions, tensions, and often irreconcilable contradictions in the present use of urban land in the context of intergenerational debts and responsibilities. Parcels of urban land are not clear, Cartesian locations, but are portals into multidimensional transformations of space and time produced through diverse, competing moral claims to the benefits of urban life.
National policies constantly emphasize deepening the housing supply side reform and accelerating the innovation of urban housing security system to solve the increasingly prominent urban housing difficulties. At present, the public rental houses in Chongqing are faced with many practical operational difficulties, such as loopholes in the access mechanism, difficulties in community operation, weak supervision, and blocking tenants’ rent-withdrawal, which can not be effectively solved, causing many discussions in the academic circle. The innovation of this paper is mainly reflected in the following three aspects: (1) summarize the unique operating difficulties of public rental houses in Chongqing; (2) analyze the development significance of co-ownership housing; (3) To explore the mode of transforming public rental housing into housing with shared property rights in response to the “simultaneous rental and purchase” system and effectively expand the scope of security. In general, this paper provides some suggestions for solving the housing difficulties of more “sandwich layer” people and promoting the sustainable development of housing security.KeywordsPublic rental housingSustainable operationCommon property right houseChongqing
Housing affordability and potential sources of affordable housing remain national concerns. Using the 10 largest metropolitan statis- tical areas (MSAs), this study measures the degree to which a multi- family housing property’s age affects its affordability, hence examining the rate at which a necessary step in the filtering process is taking place. We find that a property’s affordability increases by about 2.7% during the first decade of its existence and by about 0.5–1% every following decade, with some variation across MSAs. While this indicates that filtering could be taking place at a relatively slow rate, we show that this can add up to significant rent savings for a low-income family. Lastly, we conduct two follow-up case stud- ies of affordability in Atlanta and Philadelphia.
The thesis examines the residential location of low - income households in Hyderabad. It reveals the current distribution of low - income housing both in the formal and informal housing markets composed mainly of old city tenements, government housing, unauthorised settlements, illegal sub - divisions and private housing. Through in-depth case studies of families and household interviews selected from various types of settlements all over the city, the thesis shows how the low - income households chose their residential location within Hyderabad. It also looks in detail at the structure of the owner-occupied housing sub-markets for low - income groups, analyses the various residential choices and alternatives available in the city and investigates the way in which the residential location of low - income households has changed over the last four decades in different parts of the city. The thesis also shows how the government actions have contributed to the deepening housing crisis through the allocation of inadequate financial resources in state plan outlays for low cost owner - occupied housing. A major reorientation of housing policy is called for, in which the current priorities for housing and infrastructure provision and the control of resources especially land and tenure are taken care of. Finally, the thesis provides a conceptual model and a methodological basis for improved understanding of residential circumstances and household changes of low - income households in Hyderabad.
This paper focuses on a conflict over an urban resource between secular and Ultra-Orthodox Jews in an Israeli city. It demonstrates the intersection between cultural conflicts, urban processes and politics, and stresses the changing urban dynamics over time and the way conflicting rationales of two competing groups are formed. It highlights how demographic change, initiated and driven by external social and political forces, bears local ramifications in political and power relations. Analysis of the major players and processes (i.e., political power, decision-making and mobilization) attests to the way inter-group tensions and rivalries at the national level are manifested at the local level, and consequently determine the local social reality. The neighbourhood’s life cycle indicates the symbolic as well as the ideological aspects of demographic change and the territorialization of faith through political power and decision-making of the local governance.
Several states require owners to mitigate lead hazards in old houses with children present. I estimate the mandates’ effects on housing markets. My empirical strategy exploits differences by state, year, and housing vintage. The mandates decrease the prices of old houses by 7.1 percent, acting as a large tax on owners. Moreover, families with children become 11.3 percent less likely to live in old houses. Increases in rents for family-friendly houses suggest that the mandates have important distributional consequences. These findings are relevant for evaluating similar mandates such as healthy homes standards.
This study uses U.S. Census data on average home values in Southern California census tracts from 1960 to 2010. Using growth mixture modeling (GMM), 26 unique groups are detected capturing nonlinear change in neighborhood relative home values over this study period. There were seven broad patterns of changing home values: (1–3) decline and then rise (at high, mid, and low portions of the home value distribution); (4) rise and then decline; (5–6) a monotonic increase (either above or below the region average); and (7) a monotonic decrease. Multinomial regression models found that covariates exhibited a much stronger effect for distinguishing between the average level of home values in neighborhoods over the study period, rather than how home values changed over time.
This chapter examines the complex generative processes of vacant housing units in the outer suburbs of Tokyo. Since 2010, Tokyo has demonstrated a remarkable increase in vacant housing units, and municipalities have established countermeasures to address this issue. The increase in vacant housing units has emerged unequally in the region, and the spatial structure of urban decay in the case city can be visualized as a set of concentric circles. In the innermost circle, neighborhoods are centrally and conveniently located, vacant houses are primarily transitional, and have been purchased or rented by new residents. The second circle is an area of stagnation, where the increase of vacant houses is directly related to the aging of residents, and unevenly distributed urban decay exists. This prevented the in-flow of younger generations. In the third circle, which comprises uncompleted housing developments where semi-rural amenities are sufficient, vacant houses are either transitional or permanent, and there has been an in-flow of younger people.
Gentrifizierung wird vorrangig unter Verweis auf Konsumentensouveränität erklärt, aber Daten zur Zahl der Vorstädter, die in die Stadt zurückziehen, werfen Zweifel an dieser Hypothese auf. Tatsächlich ist Gentrifizierung ein erwartbares Ergebnis der weitgehend ungehinderten Funktionsweise des Grundstücks- und Wohnungsmarktes. Die wirtschaftliche Entwertung des in innerstädtische Quartiere aus dem 19. Jahrhundert investierten Kapitals bei gleichzeitigem Anstieg der potentiellen Höhe der Grundrente eröffnet die Möglichkeit profitabler Stadterneuerung. Auch wenn die deutlich sichtbaren sozialen Merkmale heruntergekommener Quartiere abschreckend wirken mögen, können die hintergründigen ökonomischen Merkmale durchaus für eine Sanierung sprechen. Ob Gentrifizierung eine fundamentale Neuordnung des urbanen Raums bedeutet, hängt nicht davon ab, wo die neuen Bewohner herkommen, sondern davon, wie viel Produktivkapital aus dem suburbanen Raum in die Stadt zurückkehrt.
An important source of neighborhood change occurs when there is a turnover in the housing unit due to residential mobility and the new residents differ from the prior residents based on socio-demographic characteristics (what we term social distance). Nonetheless, research has typically not asked which characteristics explain transitions with higher social distance based on a number of demographic dimensions. We explore this question using American Housing Survey data from 1985 to 2007, and focus on instances in which the prior household moved out and is replaced by a new household. We focus on four key characteristics for explaining this social distance: the type of housing unit, the age of the housing unit, the length of residence of the exiting household, and the crime and social disorder in the neighborhood. We find that transitions in the oldest housing units and for the longest tenured residents result in the greatest amount of social distance between new and prior residents, implying that these transitions are particularly important for fostering neighborhood socio-demographic change. The results imply micro-mechanisms at the household level that might help explain net change at the neighborhood level.
This chapter identified how residents’ perceptions of life differ between aging Japanese suburbs and housing estates with different mobility patterns through field surveys in the Nagoya metropolitan area. We conducted a field survey on the increase in housing vacancies, mobility patterns, and the housing supply in selected districts; topographic conditions; and the activities of local communities. In terms of the spatial structure of aging and the subsequent increase in housing vacancies, different patterns were confirmed that reflected the geographical features of the regions, such as population size, the distribution and volume of job opportunities, and the housing demand/supply balance in the region. In the Nagoya metropolitan area: As the third largest metropolitan area in Japan with an array of global and local industries, suburban shrinkage has progressed much more gradually than that in Tokyo. Thanks to the above-mentioned conditions, younger generations tend to find jobs and require detached houses in the area. Plus, suburban housing developments did not expand beyond the potential functional region in Nagoya. Even in Kani city, as it is within the 25–30 km commuter belt, it is commutable for younger generations even today. Therefore, continuous demand for housing in the suburbs supported an inflow of younger people to some selected neighborhoods. However, there are some neighborhoods that cannot appeal to younger people. Competition among suburban neighborhoods will be accelerated, resulting in gap expansion in terms of the residential environment and sustainability among neighborhoods.
This study aimed to examine how Japanese urban problems have arisen during the post-growth period and why administrative strategies have failed in dealing with them. A rise in housing vacancies was selected as an example of an urban problem that has surfaced over time. As the increase in housing vacancies in Japan was regarded as coinciding with urban shrinkage, housing vacancies in Japanese cities can generate permanent stagnation due to economic-base decline, population loss or aging, institutional reasons, or a combination of these factors. We first reviewed a discussion on gap expansion in residential condition, gentrification process, and housing vacancies in cities to clarify the nature of problems caused in Japanese aging cities. Second, case studies in the Tokyo suburbs and medium-sized cities clarified the generative processes in the matters related to an increase in housing vacancies in Japanese cities.
The objective of this paper is to investigate the factors that motivate to start business in Latvia. This study analyses a sample of 209 business start-ups. In analysis there were included 19 motivating factors for business start-up (selected by findings in scientific literature) and other factors that can influence decision making on business start-up were researched. Authors used the following methods: analysis of scientific publications; statistical analysis of survey results (descriptive statistics analysis, cross tabulations, non-parametric statistical tests). The study results indicated that important motivating factors to start business were to make own decisions, to enjoy and to increase income. About 33% of starting entrepreneurs started own business for economic reasons. About 54% of starting entrepreneurs had manager experience and about 50% experience in the business sector that influenced they performance expectations.
Die Proklamation hoher Leerstände von 12–15 % auf Büroimmobilienmärkten ist in Deutschland keine Seltenheit. Auch bei Einzelhandelsimmobilien fallen inzwischen in vielen Städten häufig leer stehende Ladengeschäfte ins Auge. Auf den Wohnungsmärkten in Ostdeutschland wird spätestens seit dem Bericht der Expertenkommission zum „wohnungswirtschaftlichen Strukturwandel in den neuen Bundesländern“ 2000 über Leerstandsquoten deutlich oberhalb von Fluktuationsreserven geklagt.
This article examines the relationship between renovation activity and housing prices in Milwaukee, Wisconsin, and whether the spatial distribution of renovation activity matters for housing appreciation. We hypothesize that the renovation of housing units is a spatially diffusive process and that proximity to renovated properties increases sale price, even after accounting for renovations to the property sold and neighborhood characteristics. By adopting a modeling approach that incorporates hedonic and repeat sales methods, we find strong evidence that proximity to renovation activity exerts a positive influence on housing appreciation and that this effect extends further in space than previously believed. Our findings lend support to policy interventions that are geographically targeted and suggest that cultivating clusters of renovated housing can be a valuable lever for neighborhood stabilization and revitalization. Though appreciation was more likely in tracts with a higher poverty rate, an analysis of annual sales volume data suggests that displacement of owner-occupier households as a result of gentrification was not widespread during the study period. However, further research to better understand spatially concentrated renovation activity as a potential contributor to the displacement of existing residents is needed.
Conditionally parametric (CPAR) Probit models are used to estimate the probability that a demolition permit was issued for residential properties in Chicago for 2000–2014. The approach has significant advantages when analyzing demolition permits because the coefficients vary across locations where demolition is followed by construction of a new building and locations where demolition leads to a vacant lot. In prime areas of the city where demolition permits are associated with teardowns, the results indicate that permits are more likely to be issued for small homes on large lots. In contrast, homes on small lots are more likely to be demolished in low-priced areas of the city, and building area has less influence on the demolition probability. All estimated coefficients vary substantially across the sample area, suggesting that a simple, global parametric specification is not sufficient for modeling demolitions in a large city such as Chicago.
JEL Codes: R14, C14.
In order to create low-income housing opportunities and mitigate exclusionary zoning, in 1968 Congress mandated that municipalities receiving comprehensive planning funds must create a housing element. In tandem, many states mandated that municipal housing elements must accommodate low-income housing needs. After examining empirical research for California, Florida, Illinois, and Minnesota, this review found aspirational success because those states rewarded the municipal planning process. In order to increase low-income housing, this review argues for state housing policy reform. Under US Department of Housing and Urban Development’s revised fair housing rule, which requires an assessment of local data, states can no longer ignore the exclusionary behavior of municipalities.
ResearchGate has not been able to resolve any references for this publication.