To Understand a City’s Pace of Gentrification, Look at Its Housing Supply

Urban Institute, June 24, 2020–Laurie Goodman, Ellen Seidman, Jun Zhu
In many MSAs, high housing costs—resulting from a lack of available housing—cause affluent buyers to look for homes in low- and moderate-income (LMI) neighborhoods. That means cities’ housing supply can determine how fast gentrification may occur. Boosting the supply of housing can slow the pace of new buyers moving into lower-income neighborhoods.