A study years in the making has added a new reference in the debate about the effects of large new apartment developments on low-income neighborhoods located nearby.1

Now published in a peer-reviewed journal, the research finalizes its findings, as summarized in the study's abstract: "New buildings decrease rents in nearby units by about 6 percent relative to units slightly farther away or near sites developed later, and they increase in-migration from lowincome [sic] areas."

  • 1. The study, titled "Local Effects of Large New Apartment Buildings in Low-Income Areas," was published by The Review of Economics and Statistics on May 6, but the research first attracted attention it the beginning of 2019. Planetizen blogger Michael Lewyn introduced the research findings (in what was then a working paper) as potential ammunition for the YIMBY response to rising housing costs in large cities with restrictive zoning codes and low amounts of residential development.

Brian J. Asquith, Evan Mast, Davin Reed; Local Effects of Large New Apartment Buildings in Low-Income Areas. The Review of Economics and Statistics 2021; doi: https://doi.org/10.1162/rest_a_01055

We study the local effects of new market-rate housing in low-income areas using microdata on large apartment buildings, rents, and migration. New buildings decrease rents in nearby units by about 6 percent relative to units slightly farther away or near sites developed later, and they increase in-migration from lowincome areas. We show that new buildings absorb many high-income households and increase the local housing stock substantially. If buildings improve nearby amenities, the effect is not large enough to increase rents. Amenity improvements could be limited because most buildings go into already-changing neighborhoods, or buildings could create disamenities such as congestion.