The Impact of Rental Housing on Neighborhood Racial and Social Integration

Ihlanfeldt, Keith and Yang, Cynthia Fan (2019): The Impact of Rental Housing on Neighborhood Racial and Social Integration.

Abstract

Neighborhood racial and class segregation continue to be major social problems within America’s metropolitan areas. Segregation has been linked to a whole host of racial and class inequalities, including access to jobs, schooling and single parenthood, and future earnings. One factor accounting for segregation is the inability of black and lower income households to afford housing in white neighborhoods, where housing units historically have been largely owner-occupied single-family homes. In recent years there has been a shift in the housing makeup of many of these neighborhoods, with rentals and foreclosures increasing in share. This has made housing more affordable in these neighborhoods. In this paper we investigate the impact that foreclosures and three types of rentals (single-family, condominium, and apartments) have on neighborhood racial and income integration using data from Miami-Dade County, Florida. We find that neighborhoods have become more racially and socially integrated as rentals have increased as a share of the housing stock.

• Item Type: MPRA Paper
• Language: English
• Keywords: racial segregation, income segregation, rental housing
• Subjects: J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants ; Non-labor Discrimination; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

References

Burge, Gregory, and Keith Ihlanfeldt. 2006. "The effects of impact fees on multifamily housing construction." Journal of Regional Science 46 (1):5-23.

Chetty, Raj, Nathaniel Hendren, Patrick Kline, and Emmanuel Saez. 2014. "Where is the land of opportunity? The geography of intergenerational mobility in the United States." The Quarterly Journal of Economics 129 (4):1553-1623.

Cutler, David M., and Edward L. Glaeser. 1997. "Are ghettos good or bad?" The Quarterly Journal of Economics 112 (3):827-872.

Ellen, Ingrid Gould, Keren Mertens Horn, and Amy Ellen Schwartz. 2016. "Why don't housing choice voucher recipients live near better schools? Insights from Big Data." Journal of Policy Analysis and Management 35 (4):884-905.

Ellen, Ingrid Gould, Johanna Lacoe, and Claudia Ayanna Sharygin. 2013. "Do foreclosures cause crime?" Journal of Urban Economics 74:59-70.

Galster, George C. 1983. "Empirical evidence on cross-tenure differences in home maintenance and conditions." Land Economics 59 (1):107-113.

Gatzlaff, Dean H, Richard K Green, and David C Ling. 1998. "Cross-tenure differences in home maintenance and appreciation." Land Economics:328-342.

Gerardi, Kristopher, Eric Rosenblatt, Paul S Willen, and Vincent Yao. 2015. "Foreclosure externalities: New evidence." Journal of Urban Economics 87:42-56.

Harding, John, Thomas J Miceli, and CF Sirmans. 2000. "Do owners take better care of their housing than renters?" Real Estate Economics 28 (4):663-681.

Horn, Keren M., Ingrid G. Ellen, and Amy E. Schwartz. 2014. "Do Housing Choice Voucher holders live near good schools?" Journal of Housing Economics 23:28-40.

Ihlanfeldt, Keith. 2019. "The deconcentration of minority students attending bad schools: The role of housing affordability within school attendance zones containing good schools." Journal of Housing Economics (forthcoming).

Ihlanfeldt, Keith, and Tom Mayock. 2016a. "The impact of REO sales on neighborhoods and their residents." The Journal of Real Estate Finance Economics 53 (3):282-324.

Ihlanfeldt, Keith, and Tom Mayock. 2016b. "The variance in foreclosure spillovers across neighborhood types." Public Finance Review 44 (1):80-108.

Ihlanfeldt, Keith, and Tom Mayock. 2018a. "Affordable housing and the socioeconomic integration of elementary schools." The Journal of Real Estate Finance and Economics:1-29.

Ihlanfeldt, Keith, and Tom Mayock. 2018b. "School segregation and the foreclosure crisis." Regional Science and Urban Economics 68:277-290.

Ihlanfeldt, Keith, Tom Mayock, and Michael Yost. 2018. Housing tenure and neighborhood crime. Paper presented at North American Regional Association Science Meetings, San Antonio, Texas.

Mills, James, Raven Molloy, and Rebecca Zarutskie. 2016. "Large‐scale buy‐to‐rent investors in the single‐family housing market: The emergence of a new asset class." Real Estate Economics.

Mundlak, Yair. 1978. "On the pooling of time series and cross section data." Econometrica 46:69-85.

National Fair Housing Alliance. 2012. The banks are back, our neighborhoods are not: Discrimination in the maintenance and marketing of REO properties Washington DC: National Fair Housing Alliance.

Sanbonmatsu, Lisa, Lawrence F. Katz, Jens Ludwig, Lisa A. Gennetian, Greg J. Duncan, Ronald C. Kessler, Emma K. Adam, Thomas McDade, and Stacy T. Lindau. 2011. Moving to opportunity for fair housing demonstration program: Final impacts evaluation. Washington, DC: U.S. Department of Housing and Urban Development, Office of Policy Development and Research.

Shilling, James D, CF Sirmans, and Jonathan F Dombrow. 1991. "Measuring depreciation in single-family rental and owner-occupied housing." Journal of Housing Economics 1 (4):368-383.

Smith, Patrick S., and Crocker H. Liu. 2017. "Institutional investment, asset illiquidity and post-crash housing market dynamics." Real Estate Economics.

Weinberg, Bruce A. 2000. "Black residential centralization and the spatial mismatch hypothesis." Journal of Urban Economics 48 (1):110-134.

Wooldridge, Jeffrey M. 2010. Econometric analysis of cross section and panel data: MIT press.