Considerable debate about the significance of the early 1990s recession (and subsequent property boom) on gentrification is still largely unresolved because the scale of analysis used to research this question has continued to focus on the neighborhood. This study examines the influence of recession on gentrification in New York City through citywide housing-market data. By using a wider lens to examine gentrification, the larger progression of uneven development and its recent acceleration become clearer. It also becomes evident that the process (of gentrification) is changing, qualitatively and quantitatively, in ways that are difficult to discern in localized studies.
This paper models the impact of an inclusionary zoning ordinance on a local housing market. Markets are segmented spatially and by the mix of housing characteristics. The paper develops a framework which explains how households and builders make rational choices among alternative segments. This implies that they can react to inclusionary zoning by relocating away from the impacted sector. Therefore, the introduction of inclusionary zoning should be preceded by a study of alternative market segments. For example, the presence of attractive alternatives will allow developers and households to exit the market segments impacted by inclusionary zoning. This would cause a decline in construction activity in the covered sector. Copyright American Real Estate and Urban Economics Association.