Due to their negative effects on surrounding neighborhoods, some countries have gradually been replacing distressed public housing developments with mixed-income housing. This paper studies the effects of such policies on local housing markets in London (UK), where local authorities demolished and rebuilt several public housing developments while adding market-rate units on-site. We show that these 'regeneration' programs lead to large increases in nearby house prices and rents over a six-year period, although house prices decrease farther away. The results are consistent with strong demand effects from observed amenity improvements near the buildings and downward price pressures from increased supply dominating in the broader area. We provide suggestive evidence that regenerations involving larger socioeconomic composition changes are associated with higher price increases.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.